Visa U.S. Spending Momentum Index Falls Again in September
14 October 2021 - 1:00AM
Business Wire
Visa’s latest SMI reading slows for the second
month in a row
Visa (NYSE: V) today announced that the U.S. Spending Momentum
Index (SMI) was 108.5 in September (seasonally adjusted), down 1.1
points from August. With the SMI reading still above 100, this
signals that more consumers are still spending more than they did a
year ago.
By category, the SMI for discretionary purchases fell 0.8 points
from the previous month to 105.0. The SMI for non-discretionary
purchases fell 0.5 points to 99.6, marking a contraction in
spending momentum. The SMI slowed the most in the Northeast,
falling 2.7 points. The Midwest and South also slowed for the
month, with both declining 0.3 points from August’s levels.
Spending momentum rose a slight 0.1 points in the West, to 111.3,
the strongest reading among the four regions.
“This month’s SMI reading reinforces our view that consumer
spending was impacted by the Delta variant,” said Wayne Best,
Visa’s Chief Economist. “We still expect spending to rebound in the
fourth quarter as virus concerns begin to ease and consumers turn
their attention towards holiday spending.”
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211013005216/en/
Media Contact Shauna Ball press@visa.com
Visa (NYSE:V)
Historical Stock Chart
From Mar 2024 to Apr 2024
Visa (NYSE:V)
Historical Stock Chart
From Apr 2023 to Apr 2024