U.S. consumer spending this holiday season appears to be on track to surpass last year's even after initial reports of a Black Friday retail-sales slump, according to MasterCard Inc. Chief Executive Officer Ajay Banga.
"That's just one day, consumers are stretching their shopping out," Banga, 55, said today in an interview in Washington. "Total spending for the year is still going to be up."
Spending on the weekend after Thanksgiving fell 11 percent to $50.9 billion from a year earlier and more shoppers stayed home, the National Retail Federation said Nov. 30. On Dec. 1, known as Cyber Monday, U.S. spending on the Web rose 17 percent from a year earlier, according to researcher ComScore Inc.
MasterCard, the second-biggest U.S. payments network, still sees strong growth for its brand and expects the last two months of the year will contribute to an annual increase in card spending, Banga said. Worldwide purchases on MasterCard credit and debit cards totaled $2.4 trillion in the first nine months of 2014, a 12 percent increase from the same period a year earlier, the company said in October.
MasterCard climbed 1.1 percent to $88.66 at 12:39 p.m. in New York. The shares advanced 6.1 percent this year, trailing the 17 percent gain for larger competitor Visa Inc.