Consumers Using Available Credit At Restaurants
New York, NY (PRWEB) April 25, 2012
Capital Access Network, Inc.s (CAN) Data Services Division today released its Q1 2012 Small Business Credit Sales Report (SBCS Report). The SBCS Report shows that consumers chose to use their available credit at restaurants, which continue to show significant positive year-over-year (YoY) card sales. Q1 2012 marks the sixth consecutive quarter of positive YoY restaurant card sales, recording a 4.4 percent rise. This is the highest YoY increase in this category since the report began tracking sales in Q1 2007.
Small businesses began 2012 with a Q1 YoY card sales decline for the eighteenth straight quarter. However, the rate of decline decreased for the third straight quarter, and at 0.7 percent was the lowest reported decline since Q1 2008. According to The Federal Reserves April, 2012 G 19 Release, consumer revolving credit availability decreased on a month-over-month basis in January 2012 (-4.4 percent), and is projected to have increased slightly in February 2012 to -3.3 percent. In contrast, Main Street YoY card sales declined only 0.6 percent in January 2012, and increased 1.62 percent in February 2012.
We see several notable increases in this report. But most impressive is the sustained improvement that has occurred in restaurant card sales. Consumers increased their use of credit cards on dining compared to this time last year. And, the trend has continued for a few quarters, with an unprecedented leap during first quarter of this year to a level not seen since we began tracking for the report. Even though it appears that consumer credit is down, available dollars are being spent dining,” stated Glenn Goldman, CAN’s CEO and President. Restaurants with smaller average ticket sizes benefited the most, but it appears that Valentines Day may have stimulated card sales of the category. And while non-restaurant businesses are not yet seeing positive YoY card sales, this quarters 4.1 percent rate of decline is the smallest decrease reported since Q2 2008.
A copy of the Q1 2012 SBCS Report can be viewed at: http://www.capitalaccessnetwork.com/sbcsreport.html.
Key Q1 2012 SBCS Report Highlights: