Friday, March 29, 2024
spot_img
HomeNewsBusiness WireVisa Spending Momentum Index Accelerated in October as Consumer Confidence Rebounded

Visa Spending Momentum Index Accelerated in October as Consumer Confidence Rebounded

 

SAN FRANCISCO–(BUSINESS WIRE)–Visa (NYSE: V) today announced that the U.S. Spending Momentum Index (SMI) was 110.6 in October (seasonally adjusted), up 2.1 points from September. The SMI’s further increase above 100 signals that even more consumers are spending more than they did a year ago.

The Visa SMI is an economic indicator of the health of consumer spending. When the Visa SMI rises above 100, the consumer spending momentum is strengthening and when it falls below 100, the spending momentum is weakening as fewer consumers are spending more relative to the previous year.

By category, the SMI for discretionary purchases rose 1.5 points from the previous month to 106.5. The SMI for non-discretionary purchases rose 1.3 points to 100.9, which is a return to positive spending momentum after contracting last month. The SMI accelerated the fastest in the Northeast, rising 3.1 points. The South (+2.9 points) and Midwest (+1.7 points) also rose for the month, with the West posting the most modest rise in momentum at 0.1 points. While the West posted the smallest month-over-month gain, the SMI reading for the region remains the strongest among the four at 111.3 in October.

“This month’s SMI reading supports our view that consumer spending is set to bounce back in the fourth quarter,” said Wayne Best, Visa’s Chief Economist. “With new U.S. COVID case counts declining and consumer confidence rebounding, we expect a solid pace of consumer spending and economic growth through the end of the year.”

About the Visa SMI

The Visa SMI is an economic indicator of the health of consumer spending. The SMI provides insight into what drives upturns and downturns in spending by measuring the breadth of the momentum supporting these trends. The Visa SMI is based on a sample of aggregated, depersonalized VisaNet data. Visa adjusts this data through proprietary methods to exclude factors that do not reflect spending momentum. The resulting sample data is then aggregated using a diffusion index framework where index values are scored from 0 to 200. When the Visa SMI rises above 100, the consumer spending momentum is strengthening and when it falls below 100, the spending momentum is weakening as fewer consumers are spending more relative to the previous year. The index is adjusted for day of week, month, holidays, and broad annual trends, and these seasonal adjustments are subject to revision each year.

The Visa SMI does not take into account the volume of payments; nor does it rely on all Visa-branded credentials, and therefore does not reflect Visa operational or financial performance. It is intended for informational purposes only and is offered on an “as is” basis without any warranties of any kind, express or implied. Each SMI report is as of the publication date.

Eligible Visa clients in the U.S. may access more detailed and customized insights at the national, regional and local spending level, including spending on the main categories of goods and services.

For more information about the Visa U.S. Spending Momentum Index, please visit www.visa.com/partner-with-us/visa-consulting-analytics/spending-momentum-index.html

About Visa

Visa (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network – enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device, for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit About Visa, visa.com/blog and @VisaNews.

Contacts

Media Contact
Shauna Ball

[email protected]

spot_img
RELATED ARTICLES
spot_img
spot_img
spot_img

Caribbean News

Omdia: Global semiconductor supply chain set to see growth in 2024 as GenAI demand increases 

LONDON, England - New research from Omdia has revealed that the global semiconductor supply chain is forecasted to reach approximately $600 billion by 2024, having navigated through strategic inventory...

Global News

New Commonwealth network to support knowledge exchange on medicines and vaccine procurement

LONDON, England - Officials attending the inaugural meeting of the Commonwealth Heads of Procurement Network (HOPN) have underscored the importance of supporting countries to...