US consumers ‘continued’ to China July exports rise, with spend in July: SpendingPulse trade surplus at record-high

PURCHASE, NY, Aug 7, (AP): According to Mastercard SpendingPulse TM, which measures in-store and online retail sales across all forms of payment, US retail spending excluding automotive increased +11.2% year-over-year in July, while retail sales excluding automotive and gas rose +9.0%. Notably, e-commerce sales were up 11.7% YOY, a sharp increase after months of softer growth. Rising prices-particularly for necessities such as food and fuel-were a contributing factor, as Mastercard SpendingPulse reflects nominal spending and is not adjusted for inflation.

Spending increases in July outpaced monthly yearover-year growth experienced thus far in 2022, with demand and higher prices both contributing factors. Of note:

“The latest retail trends place an emphasis on consumer choice and passion driven spending - they’re hunting for deals, shopping across channels and ultimately still spending on experiences and goods that make them feel good,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated. “As retailers grapple with excess inventory and supply chain constraints, it’s likely that the promotional activity seen in July will continue to be an important strategy for retailers.”

After heating up during the pandemic, the US housing market has cooled considerably since the beginning of 2022, influencing consumer spending on home-related goods. Each time a home changes hands, there is usually a significant amount of spending as consumers outfit their new abode. But with significant interest rate hikes resulting in fewer homes sold, this has been translating to a natural decline in home-related purchases, as reflected in this month’s SpendingPulse. Sales growth for the Home Improvement (+2.9%) and Furniture & Furnishings sectors (+5.0%) has slowed.

Strained

“Consumers’ purchasing power has been strained by higher prices, particularly for the most fundamental needs-based categories like food and energy,” said Michelle Meyer, US chief economist, Mastercard Economics Institute. “Thus far, nominal spending remains strong as consumers cope with high price inflation. As we continue to look at the strength of the consumer, we will be keenly focused on trends surrounding employment and wage growth.”

For additional insights about today’s housing trends and the economic impact across the country, see the Mastercard Economic Institute’s latest findings in .

Mastercard SpendingPulse™ reports on national retail sales across all payment types in select markets around the world. The findings are based on aggregate sales activity in the Mastercard payments network, coupled with surveybased estimates for certain other payment forms, such as cash and check. As such, SpendingPulse™ insights do not in any way contain, reflect or relate to actual Mastercard operational or financial performance, or specific payment-cardissuer data.

Mastercard SpendingPulse defines “US retail sales” as sales at retailers and food services merchants of all sizes. Sales activity within the services sector (for example, travel services such as airlines and lodging) are not included.

Also:

NEW YORK: American Express® (NYSE: AXP), the Small Business Card issuer in the U.S. 1, announced American Express Global Pay – a new digital solution that enables U.S. businesses to securely 2 make domestic and international business-to-business (B2B) payments. Through this new digital solution, business customers can send payments funded from their business bank account to their suppliers in more than 40 countries, across a range of currencies, using a simple, mobile-friendly platform. Eligible customers can also earn Membership Rewards® points on their foreign exchange payments. 3 American Express Global Pay is currently available to eligible U.S. American Express Small Business Card Members.

“Businesses today start, grow and compete on a global scale,” said Dean Henry, Executive Vice President of Global Commercial Services at American Express. “Our U.S. Small Business Card Members told us they want an international payment solution focused on simplicity, convenience and the chance to earn rewards – so we built American Express Global Pay to enable these businesses to easily and effectively manage their B2B payments globally on a secure platform, backed by the trusted service and unique benefits of American Express Membership.”

According to a June 2022 survey by American Express 4, 64% of U.S. small and mid-sized business owners and financial decisionmakers said they expect their total spend with businesses outside of the U.S. to increase over the next six months, and cite access to a wider range (43%) of products and services and supply chain diversification (35%) as some of the top business benefits of cross-border B2B spending.

However, one-quarter (27%) cited complexity of the process as one of the top obstacles when making cross-border payments. When asked about the attributes that small and mid-sized business owners and financial decisionmakers are looking for in a cross-border payments solution, nearly half (48%) said transparent fees and rates, on par with a simple user experience (44%). American Express Global Pay addresses these needs by providing:

In partnership with a trusted third-party vendor, American Express (Amex) commissioned an online survey among n=315 US-based small- and medium-sized business owners and financial decision makers who use/make business-tobusiness (B2B) cross-border solutions/payments, defined as those who have 1 to 250 employees. The survey was fielded between June 9- 16, 2022. The margin of error (MOE) for the total sample is +/- 6 percentage points.

American Express Global Pay is a money transmission service provided by American Express Travel Related Services Company, Inc. (American Express). This service is not available to consumers and is currently available only for American Express Business Card customers. Your business must submit an application, which is subject to review and approval by American Express. When you are creating a payment, we display the fees that we will charge you. We also make money from the purchase and sale of foreign exchange. Recipient banks or intermediary banks may charge their own fees, which can reduce the amount delivered to your recipient. The American Express Global Pay service is a separate service from your American Express Business Card and has different features and terms. If you cancel your American Express Business Card (or if American Express cancels your Card), we will close your American Express Global Pay account. This means that you will not be able to make any more payments using American Express Global Pay.

BEIJING, Aug 7, (AP): China’s export growth continued to rise in July, sending trade surplus to a record high, according to government data.

China’s exports grew 18% to $333 billion compared to the same period last year, and were up from 17.9% in June, according to data from China’s customs.

Imports, however, remained soft, growing 2.3% in July compared to a year ago. That was lower that economists’ estimates of 4%, and suggests weak domestic demand amid lockdowns across the country as China attempts to stem the outbreak of COVID-19.

China’s total trade surplus reached an all-time high of $101.3 billion in July, breaking the record set in June.

The country’s economy has rebounded from earlier in the year, when tough COVID-19 restrictions including a twomonth lockdown in Shanghai and other measures across China disrupted manufacturing and logistics.

While manufacturing and supply chain issues have eased, recovery may be affected by fresh COVID-19 outbreaks, weak domestic demand and external uncertainties such as rising inflation in developed countries including Britain and the US.

The International Monetary Fund in July predicted that China’s economy would grow 3.3% this year, below the ruling Communist Party’s target of 5.5% set in April. China’s economy contracted in the three months ending in June compared with the previous quarter after Shanghai and other cities shut down to fight coronavirus outbreaks, but the government said a “stable recovery” is under way after businesses reopened.

The world’s second-largest economy shrank by 2.6%, down from the January-March period’s already weak 1.4%, official data showed Friday. Compared with a year earlier, which can hide recent fluctuations, growth slid to 0.4% from the earlier quarter’s 4.8%.