NEW YORK — By the latest measure, holiday sales rose this year and spending remained resilient during the shopping season, even as Americans struggled with higher prices in some areas and other financial concerns.
Holiday sales rose 3.1% from early November through Christmas Eve, 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.
However, this year's sales are more in line with what is typical during the holiday season, following a strong increase in spending during the same period last year.
Still, revenue growth was slightly lower than the 3.7% increase that Mastercard SpendingPulse had forecast in September. The data released Tuesday excludes the auto industry and is not adjusted for inflation.
Apparel sales rose 2.4%, while jewelry sales fell 2% and electronics sales fell about 0.4%. Online sales rose 6.3% from a year ago and personal spending rose a modest 2.2%.
Consumer spending accounts for nearly 70% of U.S. economic activity, and economists keep a close eye on how Americans spend money, especially during the holidays, to gauge how they are feeling financially.
Leading up to the holidays, there was growing concern about Americans' willingness to spend money amid higher prices for daily necessities, at a time when savings have fallen and credit card delinquencies have increased. In response, retailers introduced discounts on holiday items earlier in October, compared to a year ago. They were also cautious about ordering the amount of inventory after experiencing overcrowded warehouses last year.
The latest report on the Federal Reserve's favorite inflation gauge, released Friday, shows prices easing. But costs still remain higher at restaurants, auto shops or for things like rent. However, Americans unexpectedly increased their spending from October to November as the holiday season kicked off, underscoring their purchasing power in the face of higher costs.
A broader picture of how Americans spend their money will emerge next month when the National Retail Federation, the nation's largest retail group, releases its combined bimonthly statistics, based on November to December sales figures from the Commerce Department.
The trade group expects U.S. holiday sales to 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 hurt the numbers.
Industry analysts will dissect the fourth-quarter financial performance of major retailers when they release that data in February.
The big concern: whether shoppers will pull back sharply after receiving their bills in January. Nikki Baird, vice president of Aptos, a retail technology company, noted that customers, already burdened by still high inflation and high interest rates, may pull back even further due to the resumption of student loan payments due Oct. 1 started.
“I'm worried about January,” she said. “I see a bit of a last hurray.”