Holiday sales growth/ U.S. consumer spending/ Mastercard SpendingPulse report/ 2024 holiday shopping trends/ online retail growth/ Newslooks/ J. Mansour/ Morning Edition/ Holiday sales climbed 3.8% from November through Christmas Eve, surpassing last year’s 3.1% increase, according to Mastercard SpendingPulse. Online shopping and promotional deals drove much of the growth, with clothing, electronics, and dining out seeing notable gains. Despite elevated prices and a shorter shopping season, consumers remained willing to spend, signaling resilience during the holidays.
Holiday Spending Rises Despite Inflation: Quick Looks
- Sales Growth:
- Holiday sales increased by 3.8%, exceeding projections of 3.2%.
- Online sales grew 6.7%, while in-store purchases rose 2.9%.
- Top Categories:
- Clothing sales up 3.6%, driven by online promotions.
- Electronics, jewelry, and dining out also saw spending increases.
- Economic Context:
- Consumer spending accounts for 70% of U.S. economic activity.
- Retailers faced challenges from inflation, a shorter shopping season, and political distractions.
- Looking Ahead:
- The National Retail Federation expects November-December sales to grow by 2.5%-3.5%.
- Final data from the Commerce Department will provide a clearer picture next month.
Holiday Spending Rises 3.8% as Shoppers Seek Value Amid High Prices
Deep Look
Holiday Spending Trends
Despite elevated prices for groceries and essentials, U.S. consumers increased their holiday spending by 3.8% during the season from November through Christmas Eve, according to Mastercard SpendingPulse. The growth outpaced last year’s 3.1% rise and exceeded initial forecasts of 3.2%.
Online shopping saw the largest boost, with a 6.7% increase compared to last year. In-store purchases rose 2.9%, as shoppers took advantage of promotional deals and sought value in their purchases.
Top Spending Categories
- Clothing: Sales rose 3.6%, largely driven by online promotions.
- Electronics & Jewelry: Both categories experienced growth amid discounts.
- Dining Out: Restaurant spending also saw gains, reflecting a return to experiential spending.
Consumer Behavior and Economic Signals
Michelle Meyer, chief economist at Mastercard Economics Institute, noted that this year’s holiday shopping revealed “a consumer willing and able to spend but driven by a search for value.” The final five days before Christmas accounted for 10% of total holiday spending, underscoring the impact of last-minute shoppers.
Consumer spending, a critical driver of the U.S. economy, offers insights into financial sentiment. Government data from November showed an uptick in retail activity, though much of the growth stemmed from auto sales tied to hurricane recovery efforts.
Retail Challenges
This year’s shopping season was shortened by five days between Thanksgiving and Christmas, putting additional pressure on retailers. Political distractions from the presidential election also impacted early November sales, with general merchandise purchases dropping 9% during the first two weeks of the month, according to Circana.
Despite these hurdles, many retailers reported a strong start to the holiday season, driven by discounts beginning as early as October.
Looking Ahead
The National Retail Federation projects total November-December sales will grow by 2.5%-3.5%, slightly below last year’s 3.9% increase. The Commerce Department’s final data, expected next month, will provide a more comprehensive view of holiday spending trends.
You must Register or Login to post a comment.