Key U.S. Business Spending Trends Reveal Increase in Temp Labor Spending

Raw materials/manufactured goods, information technology, professional services, personnel supply services and rent are top spending categories in Visa CCE survey


San Francisco — June 28, 2007 — Increasing numbers of companies are relying on more temporary workers as the labor market continues to tighten, according to data from the recently released Visa Commercial Consumption Expenditure (CCE) Index.

Visa USA today released a detailed analysis revealing key insights into how large and small U.S. businesses are spending their money. The CCE Index for 2006 analyzes government data sources and research methods to provide an assessment of business expenditures.

"While the overall U.S. economy is expected to continue to remain sluggish over the next 12 months, business spending continues to be an important engine of growth," said Wayne Best, senior vice president for business and economic analysis at Visa USA. "The Visa CCE data shows an increase in personnel supply services, which indicates that more companies of all sizes are relying on temporary workers as the labor market continues to tighten."

Best added that robust IT spending of more than $2 trillion points to the fact that more U.S. companies are looking to harness technology to streamline their operations and improve efficiencies. He also pointed to a sharp increase in rent year-over-year points to the continued demand for space to expand businesses even as the economy slows in other areas.

Top Spending Categories

The CCE Index indicates that the top five individual spending categories, representing 54 percent of total spending for all businesses in 2006, were:

  • Raw materials and manufactured goods ($2.58 trillion, up 2.3 percent)
  • Information technology-related spending ($2.12 trillion, up 8.8 percent)
  • Professional services/consulting ($1.67 trillion, up 5.4 percent)
  • Personnel supply services ($1.57 trillion, up 6.5 percent)
  • Rent ($1.38 trillion, up 13.8 percent)


Small Business Spending



Spending Category

Transaction Volume (billion)

% Share of CCE

% Increase over 2005

Core Business Services

$1,683

34.5

  4.5

Maintenance/Operations

$1,377

28.2

  2.9

Raw Materials/Mfg. Goods

   $807

16.5

  0.9

Rent

   $471

  9.6

14.3

Travel/Entertainment

   $105

  2.2

  6.1

Capital Equipment

     $50

  1.0

  4.2

Other Spending

   $389

  8.0

  5.1

Total

$4,881

 100

 




  • Retail trade — $955 billion (20 percent)
  • Wholesale trade — $646 billion (13 percent)
  • Manufacturing — $526 billion (11 percent)
  • Real estate/rental/leasing — $486 billion (10 percent)
  • Construction — $438 billion (9 percent)
Midsized Company Spending



Spending Category

Transaction Volume (billion)

% Share of CCE

% Increase over 2005

Core Business Services

$1,244

35.6

  6.0

Maintenance/Operations

   $921

26.3

  4.2

Rent

   $450

12.9

  9.2

Raw Materials/Mfg. Goods

   $370

10.6

  2.5

Travel/Entertainment

     $65

  1.9

  6.6

Capital Equipment

     $50

  1.4

16.3

Other Spending

   $397

11.3

  7.3

Total

$3,497

100

 




  • Wholesale trade — $731 billion (21 percent)
  • Retail trade — $727 billion (21 percent)
  • Manufacturing — $695 billion (20 percent)
  • Healthcare — $202 billion (6 percent)
  • Real estate/rental/leasing — $179 billion (5 percent)
Large Company Spending



Spending Category

Transaction Volume (billion)

% Share of CCE

% Increase over 2005

Core Business Services

$1,244

35.6

  6.0

Maintenance/Operations

   $921

26.3

  4.2

Rent

   $450

12.9

  9.2

Raw Materials/Mfg. Goods

   $370

10.6

  2.5

Travel/Entertainment

     $65

  1.9

  6.6

Capital Equipment

     $50

  1.4

16.3

Other Spending

   $397

11.3

  7.3

Total

$3,497

100

 




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