Tuesday, March 12, 2013
"The combination of elevated taxes, federal tax refund delays, adverse weather and higher gasoline prices clearly curbed shoppers' ability and willingness to shop in February," stated Rikard Bandebo, Vice President and Economist for First Data.
Trending on the plus side for the second consecutive month, credit card dollar volume growth continued to outperform all other payment types tracked, up 7.9 percent in February, as consumers shifted spending to credit cards.
"The fact that the personal savings rate significantly declined in January and consumers shifted more spending onto credit cards could be a sign that consumers may be overstretched," Bandebo said. "However, there are many other factors that could impact spending going forward including an improving labor market, steadily rising home values, healthy gains in the equity markets and the federal budget sequestration."
In addition, February's SpendTrend analysis of same-store dollar volume indicated closed-loop prepaid card transactions were up 3.2 percent, signature debit rose 2.0 percent and PIN debit inched up 1.3 percent; check payments declined 4.2 percent year-over-year. For further details, visit www.spendtrend.com .
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