US Visa Spending Trends

 

The bar plot illustrates the annual and monthly percentage changes across three categories of spending according to the Visa Spending Momentum Index: Discretionary, Headline, and Non-discretionary.

Analysis:

1. Discretionary Spending:

   • Annual Change: The most significant decline, around -6.83%, indicating a substantial year-over-year reduction in spending on non-essential items.
   • Monthly Change: Also shows a significant decline of about -3.63%, reflecting a consistent decrease in discretionary spending on a month-to-month basis.

2. Headline Spending:

   • Annual Change: Shows a decline of about -4.46%, indicating that overall consumer spending (both essential and non-essential) is down compared to last year.
   • Monthly Change: The month-over-month decline is slightly larger than the annual change at -3.75%, suggesting a sharper recent drop in spending.

3. Non-discretionary Spending:

   • Annual Change: The smallest decline at -1.98%, indicating that spending on essential goods and services has been more resilient, though still declining.
   • Monthly Change: A small decline of -1.36%, showing a more stable spending pattern compared to discretionary categories.

Conclusion:

The data suggests that consumers are cutting back more on discretionary spending, which is typical during economic downturns or periods of uncertainty. The decline in non-discretionary spending, though smaller, indicates that even essential spending is not immune to broader economic pressures. The overall reduction in the headline index points to a weakening of consumer spending across the board, potentially signaling a broader economic slowdown