Americans spent more in March compared with the same month a year ago, but higher gas prices were a key contributor, according to a report Friday by Atlanta-based First Data.
The good news: The rise in spending comes against tough comparables. Easter fell in early April last year, pushing more holiday sales into March 2010. Easter is April 24 this year.
The bad news: Gas prices, up nearly a third vs. March a year ago, are taking a bite out of Americans’ discretionary income.
Increased spending, at least without inflated prices, suggests rising consumer confidence.
Dollar volume at U.S. merchants rose 8.1 percent last month from March 2010, according to First Data’s monthly SpendTrend report on same-store credit, debit and check spending. Rising gas prices played a significant role in higher dollar volumes. Excluding gas station sales, dollar volume grew by 6.9 percent, the payments processor said.
Spending in February was up 8.4 percent vs. February 2010. Excluding gas station sales, dollar volume was up 7.7 percent in February over a year ago.
“Despite difficult comparables, a later Easter holiday and soaring gas prices, March proved to be a steady month for overall consumer spending,” said Silvio Tavares, senior vice president and division manager of First Data Information and Analytics Solutions.
Retail and food sales did not keep pace with February growth, as rising fuel prices affected where consumers spent their money, First Data said.
Overall average sales receipts grew 1.3 percent in March over the same month a year ago, influenced by fewer discounts and inflated prices.
Actual transaction volume for March 2011 increased 6.7 percent across all sectors, First Data said. That slowed from the 8.3 percent growth seen in February over February 2010.
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