Visa U.S. Spending Momentum Index Falls in August


Visa’s latest SMI reading indicates a pause in the recovery

Visa (NYSE: V) today announced that the U.S. Spending Momentum Index (SMI) was 109.6 in August (seasonally adjusted), down 2.9 points from July. With the SMI reading still above 100, this signals that more consumers are still spending more than they did a year ago.

By category, the SMI for discretionary purchases fell 2.0 points from the previous month to 105.8. The SMI for non-discretionary purchases was unchanged at 100.1. The SMI slowed across all regions in the United States, with momentum decelerating the fastest in the South, where it dropped 4.7 points to 108.7. By comparison, the August SMI was 109.3 in the Northeast, 108.3 in the Midwest and 111.2 in the West.

“Although consumer spending momentum downshifted in August, the recovery remains on track,” said Wayne Best, Visa’s Chief Economist. “Based on a strong first half and our forecast for economic growth to reaccelerate after a brief pause during the third quarter, U.S. consumer spending for the full year of 2021 should still expand at its fastest pace in decades.”

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


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