Positive holiday season sales combined with low unemployment with lower inflation bodes well for the economy
Another indicator that the U.S. economy is doing well was released this past week. Mastercard SpendingPulseTM issued its preliminary data for the holiday season, showing U.S. retail sales excluding automotive increased +3.1% year-over-year. This was for the period November 1st through December 24th.
The positive bump in consumer spending was comprised of online retail sales that grew 6.3% from the same prior period last year and in-store sales that grew at a much lower rate of +2.2%. In-store sales still make up a larger portion of total retail spending, while online sales continue to grow at a faster rate each year.
“This holiday season, the consumer showed up, spending in a deliberate manner,” said Michelle Meyer, Chief Economist, Mastercard Economics Institute. “The economic backdrop remains favorable with healthy job creation and easing inflation pressures, empowering consumers to seek the goods and experiences they value most.”
Restaurants gave another boost to the economy with revenues up +7.8% YOY. Other major reported sectors include apparel with a 2.4% sales increase and Grocery up 2.1% for the season.
“Retailers started promotions early this season, giving consumers time to hunt for the best deals and promotions,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated. “Ultimately it was about getting the most bang for your buck as consumers spent on a variety of goods and services, resurfacing spending trends from before the pandemic.”
Mastercard SpendingPulse measures in-store and online retail sales across all forms of payment and is not adjusted for inflation.
