/24-7PressRelease/ - Amman, Jordan, September 06, 2008 - According to index estimates, spending in all global geographic areas rose during the year. Europe represented the largest share of commercial spending, followed by the United States, Asia/Pacific, Central and Eastern Europe/Middle East/Africa, Latin America/Caribbean and Canada. The CCE index is a financial metric that provides standardized tracking of business and government spending globally and is recognized as an industry benchmark for measuring commercial spending.
"The CCE index was developed by Visa to measure the penetration of commercial payment products and to help client financial institutions develop solutions tailored to meet the evolving payments needs of business and government", said Darren Parslow, Head of Global Commercial Products, Visa Inc. "Along with Visa's comprehensive suite of commercial payment products, the CCE index helps Visa commercial issuers to better serve organizations of all sizes in managing their commercial payments."
CCE Around the Globe
Listed below is a breakdown of estimated 2007 commercial spending by geography.
Geographic Area CCE Spend 2006 CCE Spend
2007 (est.) 2007 Global Share 2006-2007 Growth
Europe $23.4 $26.8 34.6% 14.3%
United States $18.7 $19.7 25.5% 5.5%
Asia Pacific $16.8 $18.9 24.5% 13.0%
Central/Eastern Europe,
Middle East and Africa $4.3 $5.1 6.7% 20.5%
Latin America/Caribbean $3.7 $4.5 5.8% 19.8%
Canada $2.1 $2.3 3.0% 11.9%
Total Global CCE $68.9 $77.3 100.0% 12.2%
in $USD Trillions
CCE Methodology
The CCE index captures business to business purchases to acquire goods and services used in production, wholesale and retail purchases of final goods, business capital expenditures and government spending on goods and services. Adjustments are made to exclude capitalized expenditures such as construction and durable defense spending. Calculations measure transactions at basic prices which include taxes on production. Retroactive adjustments are made as necessary to include revisions in officially published statistics and economic data for current and prior years.
Data sources used to calculate the U.S. CCE index include the Bureau of Economic Analysis (BEA) and U.S. Census Bureau which conducts the Retail and Wholesale Trade Surveys. A variety of data sources were used in the calculation of the Global CCE index including the Organization for Economic Co-operation and Development (OECD), the STructural ANalysis (STAN) Database, the General Government Accounts from the National Accounts of OECD Countries, the United Nations Statistics Division National Accounts Main Aggregates Database, Economist Intelligence Unit proprietary databases and government data from several countries. A model developed by the Economist Intelligence Unit was used to estimate results for countries where government data was unavailable.
This year, the U.S. CCE index was modified to include retail and wholesale intermediate inputs which brings it into alignment with the Global CCE index. Also, the U.S. segmentation methodology was revised to improve consistency across all business segments. Results for current and prior years include these adjustments.
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