Holiday sales rose this year, and spending remained resilient during the shopping season, according to the Associated Press, even with Americans wrestling with higher prices in some areas and other financial worries.
Holiday sales from the beginning of November through Christmas Eve climbed 3.1%, a slower pace than the 7.6% increase from a year earlier, according to Mastercard SpendingPulse, which tracks all kinds of payments including cash and debit cards. This year’s sales are more in line with what is typical during the holiday season, however.
Still, sales growth was a bit lower than the 3.7% increase Mastercard SpendingPulse had projected in September. Clothing sales rose 2.4%, jewelry sales fell 2%, and electronics dipped roughly 0.4%. Online sales jumped 6.3 % from a year ago, and in-person spending rose a modest 2.2%. The data released Tuesday excludes the automotive industry and is not adjusted for inflation.
Consumer spending accounts for nearly 70% of U.S. economic activity, and economists carefully monitor how Americans spend, particularly during the holidays, to gauge how they’re feeling financially.
A broader picture of how Americans spent their money arrives next month when the National Retail Federation, the nation’s largest retail trade group, releases its combined two-month statistics based on November-December sales figures from the Commerce Department.
The trade group expects holiday U.S. holiday sales will rise 3–4%. That’s lower than last year’s 5.4% growth but, again, more consistent with typical holiday spending, which rose 3.6% between 2010 and 2019 before the pandemic.
