Visa U.S. Spending Momentum Index Signals Continued Spending Growth


Visa’s latest SMI reading indicates consumer spending remained solid in June

SAN FRANCISCO--(BUSINESS WIRE)--Jul. 9, 2021-- Visa (NYSE: V) today released the June reading of the Visa U.S. Spending Momentum Index (SMI), an economic indicator designed to be a timely gauge of the health of consumer spending. The Visa SMI delivers insight into what drives upturns and downturns in spending by measuring the breadth of the momentum supporting these trends.

In June 2021, the Visa SMI registered 111.7, down 11.6 points from the May reading of 123.3. The reading above 100 suggests consumer spending was expanding year-over-year, but at a slightly slower pace than was seen in May. At its current level, the Visa SMI implies 53 percent of consumers are now spending more than they did one year ago, while 47 percent are spending the same or less. Compared to June 2019, which was not affected by the pandemic and lockdowns, 51 percent of consumers are spending more, down slightly from 52 percent of consumers who were spending more in May. This implies that while the SMI decelerated on a month-over-month basis, the actual downshift in the pace of consumer spending was modest.

“Consumer spending continues to hold up well,” said Wayne Best, Visa’s Chief Economist. “Although there remains a lot of unevenness between regions, the SMI’s solid reading again in June reflects a continued broadening of the spending recovery across regions of the country.”

Spending momentum, although broadening, remains uneven across regions of the country. The SMI for the Midwest region continued to lag behind other parts of the country, with an SMI reading of 109.5 in June. For the second month in a row, the West ranked among the regions with the strongest consumer momentum at 115.9, as the region lagged in its recovery this time last year.

Previously only available to Visa clients, Visa is now publishing components of the SMI on a monthly basis for the general public, in part to help track economic recovery progress. The SMI builds on Visa’s commitment to powering commerce by providing tools and insights that help to gauge consumers’ ability to spend and their overall participation in the economic recovery.

About the Visa SMI

The Visa SMI is based on a sample of aggregated, depersonalized VisaNet data. Visa adjusts this data through proprietary methods to exclude factors that do not reflect spending momentum. The resulting sample data is then aggregated using a diffusion index framework where index values are scored from 0 to 200. When the Visa SMI rises above 100, the consumer spending momentum is strengthening and when it falls below 100, the spending momentum is weakening as fewer consumers are spending more relative to the previous year. The index is adjusted for day of week, month, holidays, and broad annual trends, and these seasonal adjustments are subject to revision each year.

The Visa SMI does not take into account the volume of payments; nor does it rely on all Visa-branded credentials, and therefore does not reflect Visa operational or financial performance. It is intended for informational purposes only and is offered on an “as is” basis without any warranties of any kind, express or implied. Each SMI report is as of the publication date.

Eligible Visa clients in the U.S may access more detailed and customized insights at the national, regional and local spending level, including spending on the main categories of goods and services.

For more information about the Visa U.S. Spending Momentum Index, please visit

About Visa

Visa (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device, for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit About Visa, and @VisaNews.

Andy Gerlt

Source: Visa Inc.