THE rate at which ABM withdrawals and point-of-sale (POS) transactions using plastic instead of cash have been trailing behind year-earlier levels — both in terms of number of transactions and value — plunged in October, making the eleventh consecutive month of decline.

According to Bank of Jamaica (BOJ) data, ABM and POS transaction volumes during each month between last December and October this year have on average been 13 per cent lower than year-earlier levels.

Similarly, transaction value during each month have on average been seven per cent lower than comparative months in 2009.

Since last December, when transaction value and volumes declined by one per cent and eight per cent, respectively, the rate of decline have been steadily growing.

The declines for volumes and value recorded for October were 16 per cent and 21 per cent, respectively.

Even then, the largest year-on-year decline in transaction volumes was recorded in September at 22 per cent, while the drop in value in October was the largest decline for value.

Prior months showed declines as follows

* In August, volumes declined by 15.1 per cent and values declined by 11 per cent;

* In July, volumes declined by 17.3 per cent and values declined by 17.4 per cent;

* In June, volumes declined by 13.6 per cent and values declined by 6.7 per cent; and

* In May, volumes declined by 12.9 per cent and values declined by 6.1 per cent.

It is not yet clear, if the data reflects a reduction in disposable income available to consumers or if Jamaicans have become better savers.

The Jamaican economy contracted in real terms from year-earlier levels by 1.4 per cent, 0.8 per cent and 0.5 per cent during the first quarter, second and third quarters of 2010, respectively, but thousands of jobs were already lost from 2009, when the economy declined by 2.8 per cent last year.