Spending Growth Solid In June

July 14, 2014

Solid June spending growth was reported for May 31, 2014 through June 30, 2014, compared to June 1, 2013 through July 1, 2013.

A slowly improving economy and growing job market have helped drive consumer spending.  Spending growth in June slowed slightly from May but remained positive on a year-over-year basis with a growth of 3%.

While spending in travel and hotel slowed from the previous month, growth was still strong in these sectors, with a year-over-year increase of 4.9% and 7.1%, respectively.  Food and beverage stores spending was up 4.7% versus May's 4.2% growth, a trend reflecting an increase in food costs.

Retail spending growth retreated slightly in June compared to May but remained positive with 1.2% growth.  5.7% growth in building and gardening materials and 1.5% growth in furniture and home furnishings reflect continued improvement in the housing market.  However, a slowly declining unemployment rate caused consumers to remain hesitant and kept overall retail spending growth moderate.

Average ticket growth also decreased slightly from May but remained positive at 0.9% growth on a year-over-year basis, reflecting increased food and gas prices.  Food and drinking places and food and beverage stores saw a growth of 2.5% and 1.5% respectively, as rising food costs impacted the average ticket in these categories for consumers.

Finally, credit spending continued to be the preferred spending method this month with a 5.3% increase in transaction growth and a 3.9% dollar volume growth.  The increase in transaction volume was supported by year-over-year growth in categories such as hotel and travel, where consumers tend to utilize this payment method most.

Source: Retailing Today