Mastercard SpendingPulse: Services on the Rise in March, while U.S. Retail Sales Grow 8.4%*

Rhea-AI Summary

In March 2022, consumer spending showed significant recovery as total retail sales increased 8.4% year-over-year, marking an 18.0% rise compared to pre-pandemic 2019 levels. Airline spending surged 44.8%, while lodging and restaurant sectors saw growth of 46.4% and 19.1%, respectively. In-store sales rose 9.4% since March 2019, despite a decline in e-commerce. Key states like Hawaii and Texas experienced high growth rates, driven by a full return to in-person activities.

Positive

• Total retail sales increased 8.4% year-over-year.
• Year-over-year airline spending rose 44.8%.
• Lodging and restaurants grew significantly at 46.4% and 19.1%, respectively.
• In-store sales up 9.4% compared to March 2019.

Negative

• E-commerce sales declined year-over-year.

PURCHASE, N.Y.--(BUSINESS WIRE)-- As we lapped two years since the first Covid lockdowns, March reinforced the ongoing rebalance to pre-pandemic ways of consumer spending. From airlines to lodging, spending on services is making its comeback, while in-store retail sales are rebounding as consumer mobility increases. According to Mastercard SpendingPulse™, which measures in-store and online retail sales across all forms of payment, total retail sales excluding auto increased 8.4% year-over-year (YOY) and 18.0% compared to pre-pandemic spending (2019), not adjusted for inflation. This is similar to the YOY growth experienced last month and slightly above January growth levels.

Mastercard SpendingPulse, U.S. Snapshot - March 2022 (Graphic: Business Wire)

While the pandemic and lockdowns may have temporarily limited where consumers could spend their paychecks and free time, key trends for March 2022 highlight the diversification of consumer spending across sectors and channels. Of note:

• Goods AND services: Airline spending took flight as the highly anticipated return to travel drove YOY airline growth up 44.8% in March, while Restaurants (+19.1%) and Lodging (+46.4%) also grew significantly. But an increase in services didn’t halt spending on goods as the Luxury (+27.1%), Apparel (+16.0%) and Department Store (+14.0%) sectors saw double-digit growth.
• In-store AND online:In-store sales continued to rebound, while e-commerce declined YOY in March. However, online sales are still up 83.7% vs pre-pandemic levels while in-store sales are up 9.4% compared to March 2019.
• Surf AND ski:Hawaii (+12.9%), Wyoming (+12.2%), Colorado (+11.0%), Florida (+9.7%), and Texas (+9.1%) topped the list of states with the strongest growth rates in March. Hawaii experienced the strongest growth rate for the month as the state has increased in popularity among many honeymooners and tourists looking to escape within U.S borders.
• Fueling up AND getting out: Fuel and Convenience spending saw YOY growth rates above 40% for most of the month. While much of the growth is driven by inflation at the pump, consumer mobility has continued to recover as commuter traffic and leisure travel picked up.

“Retail sales remain strong but are stabilizing as consumers resume spending on passion areas like travel, live entertainment, indoor dining and other in-person activities,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated. “After nearly two years of cautious optimism around the broader reopening, it’s a healthy sign that consumers are returning to a balanced level of spending across retail sectors and services.”

*Excluding automotive sales. Mastercard SpendingPulse defines U.S. retail sales as sales at retailers and food services merchants of all sizes; sales activity within the services sector is not included.

About Mastercard SpendingPulse:
Mastercard SpendingPulse reports on national retail sales across all payment types in select markets around the world. The findings are based on aggregate sales activity in the Mastercard payments network, coupled with survey-based estimates for certain other payment forms, such as cash and check.

Mastercard SpendingPulse defines “U.S. retail sales” as sales at retailers and food services merchants of all sizes. Sales activity within the services sector (for example, travel services such as airlines and lodging) are not included.

About Mastercard (NYSE: MA)
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. Our decency quotient, or DQ, drives our culture and everything we do inside and outside of our company. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.

www.mastercard.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20220405006273/en/

Media

Julia Monti, Mastercard

914-249-6135 | julia.monti@mastercard.com



Alexandria Pierroz, Mastercard

914-260-1020 | alexandria.pierroz@mastercard.com

Source: Mastercard Investor Relations

FAQ

What were the key consumer spending trends for Mastercard (MA) in March 2022?

In March 2022, Mastercard (MA) reported a significant increase in consumer spending, with total retail sales up 8.4% year-over-year.

Did airline spending increase for Mastercard (MA) in March 2022?

Yes, airline spending surged 44.8% year-over-year in March 2022 for Mastercard (MA).

What is the status of e-commerce sales for Mastercard (MA) in March 2022?

E-commerce sales for Mastercard (MA) experienced a year-over-year decline in March 2022.

How did in-store sales perform for Mastercard (MA) in March 2022?

In-store sales rose 9.4% compared to March 2019 for Mastercard (MA).

Which states showed the strongest growth in consumer spending for Mastercard (MA) in March 2022?

Hawaii, Wyoming, Colorado, Florida, and Texas had the strongest growth rates in March 2022.