Consumer spending growth showed an increase in the month of June 2016 as reported by the Local Consumer Commerce Index (LCCI) released by JPMorgan Chase Institute. In this report consumer spending growth increased by 1.7 percent in June versus a decline of 3.5% in May. The Index is a measure of the monthly year-over-year growth rate of everyday debit and credit card spending by over 54 million anonymized Chase customers across 15 cities in the US, according to its web site.
Small businesses recorded the majority of growth in consumer spending and this contributed 1.4 percent of the overall growth. Diana Farrell, President and CEO of the JP Morgan Institute noted, “Small businesses are the highlight of June’s growth, which is notable given their positive impact on local economies and employment.”
In addition, 14 out of 15 cities covered in this report showed growth in consumer spending, based on actual financial transactions versus self-reported transactions that may differ. The following cities are included: Atlanta, Chicago, Columbus, Dallas, Denver, Detroit, Houston, Miami, Los Angeles, New York, Phoenix, Portland (OR), San Diego, San Francisco and Seattle. Only the city of Houston showed little growth compared to the others.
The LCCI has highlighted interesting facts on the consumer spending habits of June 2016. The Index reported a reduction in spending on fuels and an increase on spending on foods and clothing. Also, New York City saw the fastest growth of the other large cities with 2.2 percent growth yearly. While Atlanta is the fastest growing of all of the cities in the report with a growth of 4.7 percent. Columbus grew the fastest of all the small cities with spending on local commerce expanding by 3.9 percent since last year.