Seasonal spending data can help issuers design promotions

A recent spending report showed a dollar volume growth of 4.2 percent in May. Retail spending saw a 1.7-percent increase, a slight bump from 1.3 percent the previous month. Importantly for issuers, the data also indicated a significant jump in credit card spending, as well as a noticeable decline in purchases made by check in month-over-month analysis.

Overall retail spending in May experienced the greatest growth in more than six months. This was mostly due to a nearly 7-percent jump in spending at home improvement retailers and a 1.4-percent increase at furniture stores. Because both of these retail categories sell high-ticket items, their customers are more likely to pay with credit.

May’s mild temperatures also led to a spike in travel expenditures, with hotel spending seeing more than 9 percent growth, marking a 12-month high. The warm weather also drove up retail foot traffic in most regions, except the Northeast.

More travel also led to an increase in gas station dollar volume, which saw a 3.6-percent increase. This increase, along with higher year-over-year gas prices, played a significant role in overall spending growth.

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