Automobile debit and credit card transactions in the state were up
14.8 percent in the second quarter.
That was one highlight from the First Hawaiian Bank Business Activity Report scheduled for release today. The report showed debit and credit card sales at businesses open at least a year in the state jumped 8.4 percent during the April-June period, compared with the same period a year ago.
Sales have increased in each quarter since the bank began reporting card sales in 2010. The report tracks 16 sectors of the state’s economy.
“Servco did see a steady increase in car sales and more customers using their credit or debit cards to pay for parts and service,” Servco President and Chief Operating Officer Rick Ching said. “We had a strong first half of the year, (and) overall we expect our sales number (in 2016) to be higher than 2015.”
Servco is the distributor for Toyota, Lexus, Scion and Subaru vehicles in Hawaii and operates a Chevrolet dealership in Waipahu.
Ching said customers typically finance their new vehicle purchases, although some pay with cash. “Customers are able to put a portion of their purchase price on a credit card,” he said. “Service and parts purchases are typically made with credit cards or cash.”
The increase in automobile sales was yet another sign that Hawaii’s economy keeps rolling along — fueled by steady growth in the state’s tourism industry, a burgeoning construction sector, a record-breaking housing market and low unemployment.
First Hawaiian, which is the largest bank in Hawaii with $19.1 billion in assets, is able to monitor broad economic activity in the state through its card processing services because it is the islands’ largest local processor of debit and credit card transactions. The bank has more than 6,000 merchants in its network, with most of those in the state.
Supermarkets took the top spot in terms of growth for the fourth consecutive quarter with a 21.5 percent increase. The utilities/communications sector was second with a
17.2 percent gain.
Besides the top three sectors, the business activity report had two other double-digit percentage gainers last quarter: hotels, up
13.4 percent, and shipping, up 10.2 percent.
Hotels also led the way in dollar volume among the 16 sectors tracked with sales
totaling $160.5 million. Restaurants, whose sales transactions rose 6.1 percent, were close behind in sales volume at $137.9 million.
Only one sector declined during the quarter: Retail slipped 0.2 percent to
$75.9 million.