New York CNN —
Americans increased spending this year’s holiday season as inflation forced consumers to spend more on retail goods and dining experiences.
According to the Mastercard Spending Pulse published on Monday, retail sales in the U.S. rose 7.6% in the period from November 1 to December 24 compared to the same period last year. The index reflects in-store and online retail sales, excluding automobile sales, across all payment types and is not adjusted for inflation.
The report is a welcome sign after a fall in consumer spending led to a fall in US retail sales in November despite heavy Black Friday participation. Still, inflation is likely to be responsible for much of the annual increase in vacation spending.
The personal consumption spending index — the Federal Reserve’s preferred measure of inflation — rose 5.5% in November from a year earlier, the Commerce Department reported on Friday.
“Consumers and retailers have come through the season well and have shown resilience in the face of mounting economic pressures,” said Michelle Meyer, chief economist for North America at the Mastercard Economics Institute, in a statement.
According to Mastercard, consumers were diversifying their spending to cope with higher prices, prioritizing restaurants and other experiences. Restaurant sales increased more than 15% compared to the same period last year.
American shoppers also showed a growing preference for online shopping, with online sales growing 10.6% year over year and e-commerce accounting for 21.6% of total retail sales, up from 20.9% in 2021.