The JPMorgan Chase Institute recently released Q1 2016 updates for its Local Consumer Commerce Index (LCCI), a measure of the year-over-year growth rate of Chase debit and credit card spending1. The LCCI captures point-of-purchase data to provide a local snapshot of consumer spending in 15 cities and their surrounding metro areas.
- Consumer spending for Q1 2016 in the city of Chicago increased moderately, with year-over-year growth rates of 2.9% in January, 3.2% in February, and -0.9% in March.
- For the same period, consumer spending across the Chicago metro area slowed slightly, with year-over-year growth rates of 0.6% in January, 1.3% in February, and -1.7% in March.
- Spending at small businesses throughout the region increased by 3.7%, while spending at medium and large businesses declined by a respective -5.9% and -0.5%. It is not clear what share of growth is a function of increased access to and/or use of debit and credit card readers.
- The Chicago region’s consumer spending growth is attributed to increased local spending on restaurants, nondurable goods – such as apparel, food, medical commodities, and recreational goods – and other services.
Illustrated in the following chart, year-over-year growth in consumer spending has been driven by increased spending at small businesses for the last 18 consecutive months.
The following chart demonstrates year-over-year change in consumer spending based on how closely consumers live to the point of purchase. Although a higher than average share (33.4%) of Chase purchases in the Chicago region are made in the same neighborhood as the consumer’s residence2, local spending’s contribution to the YOY growth rate has slowed throughout the past year.
2 Compared to an average of 27% across the 15 metro areas surveyed.
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