The holiday season in the United States is not as hot this year! The growth rate of retail sales has slowed significantly compared to the same period last year.

On Tuesday, preliminary data from Mastercard showed that retail sales growth during this year's holiday season in the United States was significantly lower than the same period last year. Consumers are becoming more selective, seeking value for money and promotions. From November 1st to December 24th, retail sales excluding automobiles increased by 3.1% compared to the same period last year, well below the 7.6% growth in holiday season sales in 2022.

The above data includes transactions using the Mastercard payment network as well as estimates based on survey-based payment forms.

Michelle Meyer, Chief Economist at Mastercard, said in a statement that consumers are spending cautiously.

After the data was released, Mastercard's stock price fell 0.2%, hitting a daily low, while the US stock market initially rose by about 0.4%.

Retail sales during the holiday season are an important indicator of the US economy, and the performance of this heavyweight traditional sales season deserves attention. The retail situation in the real economy seems to be not as booming as the performance of the US stock market. However, looking at a longer time frame, US consumers have shown resilience throughout the year, outperforming market expectations.

Data released in mid-December showed that US retail sales in November increased by 0.3% compared to the previous month, higher than the pre-value of -0.1% in October and market expectations, with the growth rate turning positive. Restaurants and bars, sporting goods stores, and online retailers were leading the way. Gasoline sales were once again dragged down due to price declines, but apart from that, sales in other categories were generally strong, except for electronics and building materials.