Visa Commercial today released the global Commercial Consumption Expenditure (CCE) forecast for 2006 that shows steady growth in business and government spending worldwide.
Using the CCE index, the first and only standardized metric to track business and government spending globally, Visa Commercial predicts global CCE in 2006 will be US$64.8 trillion, which represents a 6.6 percent increase over 2005 estimates of US $60.8 trillion.
The CCE index provides the global payment industry, including Visa and its 21,000 member financial institutions, an unbiased and consistent way to monitor global business expenditures. The Visa CCE index includes all commercial spending with the exception of payroll and other select expenditures.
"As the only standardized global metric to track and forecast global commercial spending, Visa Commercial's CCE index captures the pulse of business and government spending and measures the continued transition to electronic payment systems, including the full spectrum of Visa products and services," said Aliza Knox, senior vice president, Visa Commercial, Visa International. "The global CCE index provides a reliable benchmark of global business expenditures which allows us to gauge the traction of various payment types with corporate and government entities and helps to identify new growth opportunities for our members."
Utilizing methodology developed in-house by Visa and unveiled in 2004 CCE draws upon government data in methods similar to the Personal Consumption Expenditure (PCE) index, which monitors consumer-related spending. Global CCE is estimated using four key data elements: the amount of business-to-business purchases to acquire goods and services used in production; wholesale and retail purchases of final goods; some business capital expenditures; and government spending on goods and services. Adjustments were made for capitalized expenditures, such as construction and durable defense spending. The calculations measure transactions at basic prices, which include taxes (less subsidies) on production. The types of transactions included in CCE can be captured on a variety of Visa products including Visa Corporate, Visa Commerce, Visa Purchasing, Visa Business and Visa Distribution.
Global payment trends indicate a movement towards electronic-based transactions, providing a significant opportunity for Visa’s suite of commercial products. Visa Commercial provides payment products with information management and services designed to help businesses and government achieve greater efficiency, control and convenience. The global CCE index establishes a valuable baseline for measuring market penetration growth and effectiveness for Visa and its member financial institutions.
Visa will continue to provide global CCE forecasts annually.
Commercial Expenditure Regional Breakdown
Download document for overall 2005 estimates and 2006 forecasts for electronic and paper-based business and government spending within Visa's six global regions. Download the document now 7 kb (GIF Image)