Associated Press
Holiday sales rose this year and spending remained resilient during the shopping season even with Americans wrestling with higher prices in some areas and other financial worries, according to the latest measure.
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, after a surge in spending last year during the same period.
“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.”
The number of people seeking unemployment benefits has remained very low by historical standards and employers are still having a hard time finding enough workers.
Still, sales growth was a bit lower than the 3.7% increase Mastercard SpendingPulse had projected in September. The data released Tuesday excludes the automotive industry and is not adjusted for inflation.
Clothing sales rose 2.4%, though 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%.
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.
There had been rising concern leading up to the holiday about the willingness of Americans to spend because of elevated prices for daily necessities at a time that savings have fallen and credit card delinquencies have ticked higher. In response, retailers pushed discounts on holiday merchandise earlier in October compared with a year ago. They also took a cautious approach on how much inventory to order after getting stung with overstuffed warehouses last year.
The latest report on the Federal Reserve’s favored inflation gauge, issued Friday, shows prices are easing. But costs remain still higher at restaurants, car shops, or for things like rent. Americans, however, unexpectedly picked up their spending from October to November as the holiday season kicked off, underscoring their spending power in the face of higher costs.
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 expects U.S. holiday sales will rise 3% to 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 skewered numbers.
Industry analysts will dissect the fourth-quarter financial performance from major retailers when they release that data in February.
The big concern: whether shoppers will pull back sharply after they get their bills in January. Nikki Baird, vice president of Aptos, a retail technology firm, noted customers, already weighed down by still high inflation and high interest rates, might pull back more because of the resumption of student loan payments that kicked in Oct. 1.
“I am worried about January,” she said. “I can see a bit of a last hurrah.”
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Republished with permission of The Associated Press.
16 comments
Earl Pitts "Sage Expert on Everything" American
December 26, 2023 at 4:28 pm
Good Evening Ameeica,
This is a vallant attempt by The A. P. to prop up the FAILED DEMOCRATIC PARTY.
Gotta credit A. P. for their loyalty.
Thank you America,
Earl Pitts American
****WAKE UP AMERICA*****
JD
December 26, 2023 at 9:39 pm
To EarL (the “Loser”) Shitts, in response to your comment that suggests the Associated Press (AP) is attempting to prop up the Democratic Party with its article on holiday sales and economic conditions, here’s a rebuttal:
Objective Reporting: The AP is known for its commitment to objective and unbiased reporting. The article in question provides a factual analysis of the current economic situation, including holiday sales data, which is a standard practice in journalism and not inherently partisan.
Data-Driven Analysis: The report relies on data from Mastercard SpendingPulse and other economic indicators, which are objective sources. These sources provide an impartial view of the economic situation, irrespective of political affiliations.
Economic Complexity: Economic trends and consumer behavior are complex and influenced by multiple factors beyond political party policies. The article’s focus on various aspects, such as job creation, inflation pressures, and consumer spending, reflects this complexity.
Broader Economic Context: Mentioning positive aspects of the economy, such as “healthy job creation and easing inflation pressures,” does not equate to supporting a particular political party. It’s part of providing a comprehensive view of the economy, which includes both positive and negative aspects.
Consumer Behavior Insights: The article’s focus on consumer spending during the holiday season is a relevant topic for a wide range of readers, offering insights into the health of the economy, which affects everyone regardless of political leanings.
Retail Industry Challenges: Highlighting the challenges faced by the retail industry, such as managing inventory and dealing with inflation, is crucial for a complete understanding of the current economic landscape, not a political endorsement.
In conclusion, the AP article offers a balanced view of the current economic situation, backed by data and encompassing various aspects of the economy. It’s important to differentiate between factual reporting on economic conditions and political endorsements or biases.
In short, you got nothing Earl Shitts.
Earl Pitts "Sage Expert on Everything" American
December 27, 2023 at 6:59 am
Thank you for reaching out for my professional help, JD, its clear to see you have been indoctorinated into “Dook 4 Brains Leftism” for many years. Most likely by a relative or a perverse same sex partner.
But, JD, dont dispair. Here at the Earl Pitts Mercy Hospital for Hospice care of “End Stage Dook 4 Brains Leftism” we have an amazing 80% recovery rate for previously terminal cases like yourself.
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Again, JD, relax your sphincter as you are not going to die with your debilitating condition.
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Please pack an over night bag with a change of cloths and any medication you may be taking. (Percription meds only JD please leave your street drugs at home). We have our transport crew on the way.
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The Fouch
December 27, 2023 at 8:55 am
Good morning JD,
I’ve reviewed your unique case with Earl, and after reading your rambeling defense of the ap, I have to agree with Earl on his diagnosis.
The sooner you avail yourself of the treatment the better we all will be.
Dr. Fouchi
rick whitaker
December 27, 2023 at 9:04 pm
jd, earl shitts demonizes everything he thinks he can get mileage out of. that’s a true wind bag. ap is a balanced and accountable news media. those entities are maga cultist like earl shitts favorite targets. that makes guys like earl unbearable to converse with. he thinks he has comedic skills , how funny. you did a good job of trying to get sanity into a place that doesn’t value sanity, earl shitts head or sphincter.
JD
December 28, 2023 at 7:04 pm
Oh he’s not real, pretty much like the AI generated responses I have a script generating against him. I’m training my own LLM’s, since the commercial ones are programmed NOT to post stinging rebukes – yet. Mine will be far nastier. Twitter, this forum, and Fox News comments will devolve into idiots arguing with AI. Want to talk about Deep State yet?
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December 26, 2023 at 7:02 pm
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Earl Pitts "Sage Expert on Everything" American
December 27, 2023 at 7:04 am
Eva and Julia,
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Please move along with your scam spam.
Doctor Earl Pitts American
Julia
December 26, 2023 at 7:12 pm
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Impeach Biden
December 27, 2023 at 7:42 am
Demo spenders will look to “Dementia” Joe to erase their credit card debt just like he did with the students. The people out there that work, plan accordingly, save, and balance their check book will get the bill. Isn’t America great? See why tens of thousand illegals cross every day. They want a piece of that Biden economics.
Tom
December 27, 2023 at 9:23 am
I guess it’s either that or the repo’s giving billionaires tax cuts based on the most deeply flawed economic theory ever – trickle down economics, because ya know, Jeff Bezos needs another $500MM motor yacht. I’m just a schmuck footing the bill regardless of who benefits but you can’t complain about one side when the other is no better.
Impeach Biden
December 27, 2023 at 9:39 am
Don’t you wish you would have created Amazon? Lots of hard work and it hit big. Now people like you want to take it from him.
Tom
December 27, 2023 at 10:28 am
He’s just an example of rich people getting richer under trickle down economics. It could have been Larry Fink or anyone of a number of billionaires/organizations who don’t pay taxes. Could have been George Soros – there’s a self made billionaire for you. People like me (whatever that means) don’t much care outside of my own ability to have a decent life and be financially self sufficient. Your identity politics is interesting but misses the bigger point that most people are centrists.
Don't Say FLA
December 27, 2023 at 11:25 am
Staying with IBS’ change of topic from the US continued stellar recovery from the worldwide Covid slowdown (best relative to any%every nation) to a topic of “Dementia Joe,” those things under Trump’s toes aren’t called Joe Pads! 😉
Comments are closed.