First Data’s SpendTrend information for January provides yet more suggestive evidence that consumers are more willing to use their credit cards for purchases. Dollar volume growth was up an estimated 7.2% for credit, but still lagged signature debit which was up 9.7% year over year. Total card spending was up 7.4%.
“Consumer spending during the fourth quarter of 2010 was the strongest in nearly five years, and the momentum from the strong holiday season carried over into January,” said Silvio Tavares, senior vice president and division manager of First Data Information and Analytics Services.
As we have discussed elsewhere, it is still early to tell if increased credit card spending will convert to balances which incur finance charges. Consumers remain cautious with regard to new borrowing.
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