3 Data Points Worth Sharing 6.16.23
E-Commerce Growth 13%, 2.34% Inflation, Uber rides healthy
E-Commerce growing +13% as per Mastercard...
Inflation 2.34%, the Fed can stay paused...
Uber ride data suggests healthy activity...
E-COMMERCE REMAINS STRONG +13%
E-commerce growth in the US has continued to exceed 10% for the fourth consecutive month, according to Mastercard data. This highlights the resilience of the consumer and the continued demand for online shopping over brick-and-mortar stores. While we believe that omnichannel commerce is the best approach, we also recognize that as online tools become more user-friendly and convenient, more consumers will choose to shop online.
Demand for commerce is driving demand for tools that enable conversions. We recently shared that WordPress market share is declining precipitously, and this has led to share gains for companies like Wix and Squarespace. These companies offer easy-to-use and flexible online tools that drive engagement and commerce.
** Full disclosure, Avory is an investor in Wix at the time of this piece.
MORE GOOD NEWS
INFLATION OR DEFLATION TRAJECTORY CONTINUES
We continue to track real-time inflation indicators and are eager for the day when they are no longer a part of our data newsletter. We believe this day is coming soon, as inflation indicators remain in a downtrend. Today's reading hit 2.34%, which is only 0.34% away from the Fed's long-term mandate of 2%. Government data has tracked this data with a lag, but continues to point towards a job that is essentially complete.
The Fed paused rates this week, which is the first step, and July is the only other meeting until September. We are almost on the other side of this macro moment.
UBER DEMAND SIGNALS CONTINUED MOBILITY FOR CONSUMERS: PER CREDIT CARD DATA
Credit card data for Uber receipts shows that demand for ride-sharing is still strong. This data supports the idea that the economy is normalizing in terms of consumer habits and also suggests that consumers are still resilient.
Disclaimer: Not a recommendation to purchase or sell any securities mentioned. This is for educational purposes only.