News

First Data SpendTrend: Spending growth gains momentum in April

May 12, 2014

First Data Corp. has released its SpendTrend analysis for April 1–30, 2014, compared to April 2–May 1, 2013. With the exception of checks, all tracked modes of payment were up for the month, with the highest growth in prepaid, at nearly 7 percent.

Spending growth of 4.1 percent gained momentum vs. March growth of 3.1 percent, driven by warmer weather as well as the Easter shift into April this year, which supported shopper foot traffic.

Transaction growth of 3.5 percent was up compared to March’s 2.7 percent growth. Higher gas prices, an uptick in job creation and a lift in consumer confidence also supported the growth.

Average ticket growth of 0.5 percent was up vs. March growth of 0.3 percent — the strongest growth in the past 12 months, driven by an increase in gas and food costs. Average ticket growth of 1.8 percent was seen in food and beverage stores, the highest growth in more than a year.

Krish Mantripragada, SVP of information and analytics solutions at First Data, summed up the month’s activity:

Overall spending growth was strong and gained momentum over March as the Easter shift into April and the return of warmer weather encouraged consumers to get out and shop. Consumer confidence and job creation also bounced back, which put consumers in the mood to release their pent-up demand from the extended winter. We also saw debit spending growth continue to rise, due in large part to higher tax refund values and volumes through April.