Visa Spending Momentum Index

United States

Latest Release

September 11, 2023 - Visa’s U.S. Spending Momentum Index (SMI) fell to 97.2 in August (seasonally adjusted), a 0.2-point decline from July. The gas SMI surged 16.4 points month-over-month (MoM), which helped offset the 2.4-point MoM decline in the non-discretionary SMI and 4.4-point decline in the restaurant SMI. The discretionary SMI increased slightly MoM (up 0.1 points) but remains below 100, meaning the index is in contraction territory. On a regional basis, spending momentum rose in the Midwest and Northeast, with the Midwest leading all other regions in MoM growth. The West still leads the nation in spending momentum, despite a decline in its SMI in California as all major metro areas in California experienced an increase in their three month moving average unemployment rate in both June and July.1 The South’s SMI decline was due mostly to the closing of businesses in Florida and Georgia as people prepared for the impact of Hurricane Idalia.

¹ Visa Business and Economic Insights and U.S. Department of Labor

In this video, global economist Dulguun Batbold introduces Visa’s Spending Momentum Index as a guide to navigate business through economic cycles. He explains how SMI can provide an advance warning of emerging economic weakness at both the national and local levels, helping businesses plan ahead, adjust acquisition plans, reallocate marketing budgets or refocus areas for more risk monitoring.

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