Visa U.S. Spending Momentum Index Rises Again in November

Rhea-AI Summary

Visa (NYSE: V) reported an increase in the U.S. Spending Momentum Index (SMI) to 111.9 in November, a rise of 1.3 points from October. This signals a positive trend in consumer spending for the second consecutive month. The SMI indicates that more consumers are spending compared to the previous year. Notably, discretionary purchases improved, while non-discretionary purchases saw a decline. Regionally, the Midwest reported the highest SMI at 112.5. Visa's Chief Economist, Wayne Best, suggests that consumers are currently resilient despite inflationary pressures.

Positive

• November SMI increased to 111.9, showing consumer spending momentum improvement.
• Second consecutive month of growth in consumer spending momentum.
• Discretionary purchases SMI rose 1.4 points to 107.9.
• Midwest region SMI increased by 2.8 points, highest at 112.5.

Negative

• Non-discretionary purchases SMI fell 1.1 points to 99.8, indicating contraction.

SAN FRANCISCO--(BUSINESS WIRE)-- Visa (NYSE: V) today announced that the U.S. Spending Momentum Index (SMI) was 111.9 in November (seasonally adjusted), up 1.3 points from October, marking the second consecutive month of acceleration in consumer spending momentum. 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 1.4 points from the previous month to 107.9. The SMI for non-discretionary purchases fell 1.1 points to 99.8, which marks a contraction in momentum for the category. On a regional basis, the SMI accelerated the fastest in the Midwest, rising 2.8 points followed by the Northeast (+1.1 points). The South (+0.6 points) and West (+0.5 points) also posted improvements for the month. The strong rebound in the SMI for the Midwest now makes it the region with the highest reading at 112.5 as of November with the Northeast the softest reading at 110.8.

“This month’s SMI reading once again reinforces the narrative that consumer spending remains robust to round out this year,” said Wayne Best, Visa’s Chief Economist. “It appears that consumers are looking past the high inflation readings in recent months at least for the time being.”

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/20211208005235/en/

Shauna Ball

press@visa.com

Source: Visa Inc.

FAQ

What is the latest U.S. Spending Momentum Index for Visa as of November 2023?

The U.S. Spending Momentum Index for Visa is 111.9 as of November 2023.

How much did the Visa Spending Momentum Index increase from October to November 2023?

The Visa Spending Momentum Index increased by 1.3 points from October to November 2023.

Which category saw a decline in the Visa Spending Momentum Index in November 2023?

The non-discretionary purchases category saw a decline, with the SMI falling to 99.8.

What region had the highest Spending Momentum Index in November 2023?

The Midwest had the highest Spending Momentum Index at 112.5 in November 2023.

Who is the Chief Economist at Visa, and what did they say about consumer spending?

Wayne Best is the Chief Economist at Visa, and he stated that consumer spending remains robust despite recent inflation.