2007 US Commercial Spend to Reach $18 Trillion

• Posted: Tuesday, March 27, 2007
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• Author: pradhana
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• Filed under: Market Survey

Commercial spending in the US will rise to nearly $18 trillion in 2007, up 3.9% from 2006, according to Visa's Commercial Consumption Expenditure (CCE) index.

The US accounted for 26% of 2006 commercial spending, which reached $66.7 trillion worldwide.

The commercial spending breakdown for 2006 worked out to $4.88 trillion for small businesses, $3.50 trillion for midsize companies, $7.64 trillion for large companies and $1.26 trillion for government agencies. Spending was up for each sector over 2005 levels.

The CCE index defines small businesses as those with $25 million or less in annual revenues, midsize companies are defined as having $25 million to $500 million in annual revenues and large companies are defined as those with annual revenues of more than $500 million.

B2B spending is expected to rise through 2010, when it will pass $20 trillion, including $5.7 trillion in small business spending.

Visa's CCE includes all private and public sector commercial spending in the US except for payroll and other select expenditures. It uses government data and research methods similar to the Personal Consumption Expenditure (PCE) index that annually monitors consumer-related spending. It uses the same source of measures from the Bureau of Economic Analysis (BEA) and the Census Bureau, including the GDP. [eMarketer]

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