US holiday shoppers increase spending despite higher prices
NEW YORK
People walk through Rockefeller Center a little over a week before Christmas in midtown Manhattan on Dec. 16, 2024, in New York City
Sales rose this year during the holiday shopping season even as Americans wrestled with elevated prices for many groceries and other necessities, according to new data.
Holiday sales from the beginning of November through Christmas Eve climbed 3.8 percent, outpacing the 3.1 percent increase from a year earlier, according to Mastercard SpendingPulse, which tracks all kinds of payments including cash and debit cards.
The last five days of the season accounted for 10 percent of the spending.
This year, retailers were even more under the gun to get shoppers in to buy early and in bulk since there were five fewer days between Thanksgiving and Christmas.
The data excludes the automotive industry and is not adjusted for inflation.
Clothing sales rose 3.6 percent, with most of the growth being fueled by online shopping. Spending on restaurants, and sales of electronics and jewelry also grew.
Online sales jumped 6.7 percent from a year ago and in-person spending rose 2.9 percent.
Consumer spending accounts for nearly 70 percent of U.S. economic activity and economists carefully monitor how Americans use their money, particularly during the holidays, to gauge how they’re feeling financially.
The most recent government data on consumer spending, released on Dec. 17, showed shoppers stepped up activity at retail stores last month.
But auto dealer sales drove most of those gains as huge storms created a need for new cars in parts of the southeast slammed by Hurricane Helene in October. Big discounts at many retail chains also attracted shoppers.
But the report also hinted at some consumer caution as sales at grocery stores, clothing shops, and restaurants fell. Outside of car dealers and online retailers, sales gains were modest.
