Consumers used their credit and debits cards more often in January, suggesting retail spending was up for the month. Overall dollar volume growth climbed 7 percent and transaction growth increased 7.2 percent in January 2012 compared to the same time last year, according to a report from the First Data SpendTrend.<\/p>\n
Credit cards exhibited the most growth in the two categories, improving by 7.8 percent in transaction growth and 8.5 percent in dollar volume growth. Signature debit was up 6.4 percent and 4.8 percent in both categories. First Data notes credit card spending resumed in January after consumers were hesitant to charge on their cards in December.<\/p>\n
"Retailers benefited from the mild weather in January. Reduced energy and home heating expenses combined with lower food inflation provided consumers with extra income to spend on discretionary categories such as clothing and home goods," said Silvio Tavares, senior vice president and division manager of First Data Global Information and Analytics Solutions.<\/p>\n
A separate report from the Federal Reserve suggests consumer debt jumped 7 percent in the fourth quarter of 2011, which indicates consumers are growing more confident in their ability to spend and pay off their bills.<\/p>\n","protected":false},"excerpt":{"rendered":"
Consumers used their credit and debits cards more often in January, suggesting retail spending was up for the month. Continue reading