Growth in online spending in the U.S. slowed in the third quarter, according to a study released Friday, in yet another sign that the economic slowdown has caused the American consumers to pull back.
According to a study released by comScore (SCOR), a company that tracks online business, e-commerce grew by 6% in the third quarter versus the same quarter a year ago. But that was slower than the 13% year-over-year growth in the second quarter and 12% year-over-year increase in the first quarter.
Looked at on a month-by-month basis, online spending grew by 18% in December of 2007 and 20% in November, compared with the same month a year prior. In June of 2007, online spending had surged 25% over the previous year.
Total online retail sales in the U.S. were approximately $30 billion in the third quarter, excluding travel spending, according to the study.
It really goes to the point that no segment has been immune to the pull back in consumer spending, according Michael Niemira, chief economist and director of research at International Council of Shopping Centers. Every segment of retail has been affected.
While consumers have pulled back their spending overall, video game sales surged by 60% in the third quarter of 2008 compared with a year earlier. Spending on furniture and appliances also jumped, up by 52% from the same quarter one year ago.
Consumers decreased their spending on music, movies and video, with sales down 29% from 2007 levels. And consumers spent 11% less on jewelry and watches.
Online spending has been the fastest growing area of retail, but as the credit crunch has cramped the consumer, even e-commerce has fallen off significantly.
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Sources :
- CNN Money: Americans rein in online spending, October 31, 2008: 5:35 PM ET
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