Raw Materials/Manufactured Goods, Information Technology, Professional Services, Personnel Supply Services and Rent are Top Spending Categories

SAN FRANCISCO -- Visa USA today released a detailed analysis revealing key insights into how U.S. businesses large and small are spending their money. The Visa Commercial Consumption Expenditure[TM] (CCE) Index for 2006 analyzes government data sources and research methods to provide a useful 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, Business and Economic Analysis, 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. Moreover, robust IT 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. Lastly, a sharp increase in rent year-over-year points to the continued demand for space to expand their 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)

"This detailed analysis provides valuable insights into how and where companies large and small are spending their resources, and allows us to pinpoint areas of growth and potential concern for business and economy overall," said Darren Parslow, senior vice president, Visa Commercial Solutions. "These insights can help financial institutions gain a keen understanding of current trends, enabling them to deliver more focused and compelling payment solutions to their commercial, government and small business clients."

Small Business Spending

According to CCE, small business spending grew 4.3 percent in 2006, to $4.88 trillion, with growth expected to remain at 4.3 percent and reach $5.09 trillion in 2007. Small businesses are defined as those with $25 million or less in annual revenues.

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Approximately 63 percent of total 2006 small business spending was by companies that fell into five broad industry categories:

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Midsized Company Spending

The CCE analysis found that spending by midsized companies during 2006 grew by 7.9 percent to $3.50 trillion and was the fastest among all business sectors. Spending growth in this sector is expected to reach $3.61 trillion in 2007, a growth rate of 3.1 percent. Midsized companies are defined as having $25 million to $500 million in annual revenues.

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About 73 percent of total 2006 middle market spending was by companies in the following industries:

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Large Company Spending

Large companies represent the largest share of CCE spending at $7.64 trillion, which grew by 7.7 percent in 2006. Spending growth in this sector is expected to be 3.7 percent, reaching $7.91 trillion in 2007. Large companies are defined as having revenues of more than $500 million.

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A total of 80 percent of total large market spending was by companies in the following industries:

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Government Agency Spending

Government agency expenditures grew at an annual rate of 6.6 percent, to $1.26 trillion, in 2006, according to CCE. Growth in government agency business spending is expected to be 8.1 percent, reaching $1.34 trillion in 2007.

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"The Visa CCE findings clearly show that business and government spending is concentrated in a number of key areas - raw materials and manufactured goods, personnel services and rent - and we expect these categories will remain the top spending categories through 2007," said Best. "By shifting more of these significant expenditures to payment card products rather than cash or checks, businesses and governments have the opportunity to potentially better manage their cash flow, while often earning rewards."

About The Visa Commercial Consumption Expenditure Index

CCE includes all private and public sector commercial spending in the U.S. with the exception of payroll and other select expenditures. CCE utilizes government data sources and research methods similar to the Personal Consumption Expenditure (PCE) index that annually monitors consumer-related spending. By using the same source of measures from the Bureau of Economic Analysis (BEA) and the Census Bureau, including the gross domestic product, CCE offers an unbiased and consistent way to monitor business expenditures in the United States with comparable methodology used for global spending. According to the CCE Index:

* Core Business Services includes management consulting, architectural services, engineering services, data processing, and administrative support among others.

* Maintenance and Operating Supplies includes spending on construction, utilities, telecommunications, advertising, office supplies, computer equipment and maintenance and repair.

* Capital Equipment is defined as any expenditure on goods with a lifespan of more than five years, including transportation equipment, industrial equipment and machinery.

* Other Spending includes expenditure on doctors, personal services, consumer rental services, etc.

About Visa Commercial Solutions

Visa offers small businesses, middle market companies, large corporations and government agencies trusted, reliable solutions that meet their many commercial payment needs - for virtually any purchase type, any situation or any business process. These capabilities help businesses and government agencies potentially streamline operations, reduce overall costs and improve cash flow for better management of their payment processes. Visa's commercial solutions offer a great way for businesses and the public sector to pay and be paid. For more information about Visa's commercial business, please visit www.visa.com/commercial.

About Visa USA

Visa USA is a leading payments brand and the nation's largest payments system, enabling banks to provide their consumer and business customers with a wide variety of payment alternatives tailored to meet their evolving needs. Visa USA is committed to increasing the choice, convenience, acceptance and security of Visa payments for all stakeholders - financial institutions, cardholders and merchants. In the United States, more than 521 million Visa-branded cards have been issued by our 13,320 financial institution customers.

Visa products generated nearly $1.8 trillion in total volume in the United States through March 2007 and enjoy unsurpassed acceptance around the globe. For more information, visit www.visa.com.