U.S. holiday season retail sales increased nearly 4% year-on-year, accelerating growth, with promotions having a significant stimulating effect on consumption

According to the latest data from Mastercard SpendingPulse, retail sales in the U.S. during the 2024 holiday season increased by nearly 4% year-on-year, primarily due to more consumers seeking discounts and deals during November and the "Black Friday" promotional period, as well as increased spending on Christmas Eve.

Mastercard's data includes in-store and online retail performance nationwide from November 1 to December 24. It is worth noting that this year's holiday season in the U.S. is shorter than in previous years. Mastercard tracked all payment types, including cash and debit card spending. The relevant data is not adjusted for inflation and does not include automobile sales.

Specifically, retail sales during this year's holiday season in the U.S. grew by 3.8% year-on-year, compared to a 3.1% increase in 2023. The last five days of this year's holiday season accounted for 10% of total holiday spending. Major retailers, such as Walmart and Amazon, increased their promotional efforts during this shorter holiday season.

In terms of specific categories, jewelry sales increased by 4% year-on-year, electronics sales grew by 3.7%, and clothing sales rose by 3.6%. This year, American consumers showed a significant increase in demand for experiential spending, such as dining out, with restaurant spending rising by 6.3% year-on-year.

According to preliminary data, consumers this year preferred online shopping. From November to December, online retail grew by 6.7% compared to 2023, while in-store sales only increased by 2.9%. Among those shopping online, most Americans purchased clothing, with online purchases in this category seeing a significant year-on-year increase of 6.7%.

Regionally, Tampa in Florida and Phoenix in Arizona performed exceptionally well in e-commerce, leading the way with year-on-year e-commerce sales growth of 10.6% and 10%, respectively. Additionally, cities such as Minneapolis, Dallas, Charlotte, Orlando, and Houston also saw e-commerce sales growth significantly above the national average during this year's holiday season.

Even in the face of ongoing inflation and rising prices, American consumers remain willing to spend, indicating that as long as they can find bargains, they are still willing to spend money.

Michelle Meyer, Chief Economist at the Mastercard Economics Institute, stated:

"The holiday shopping season shows that American consumers are willing and able to spend, but their motivation is driven by the pursuit of value, which can be seen in the concentrated online spending during major promotional events."

"Against the backdrop of a healthy labor market and increasing household wealth, consumer spending has remained robust throughout the year."

Consumer spending accounts for about 70% of the U.S. economy. Recent data shows that despite economic uncertainties, consumer spending remains strong. Earlier this month, data indicated steady growth in U.S. retail sales for November, with Wall Street believing it reflects the resilience of consumer spending. A surge in automobile purchases and strong growth in online shopping were the main drivers of November's retail sales, while spending in other areas showed mixed results The largest retail trade organization in the United States, the National Retail Federation (NRF), will release two months of retail sales data obtained from the U.S. Department of Commerce in January next year, which will provide a more comprehensive assessment of the overall consumption situation.

Analysts say that the resilience of U.S. retail sales, combined with a rebound in inflation, adds further evidence for the Federal Reserve to pause interest rate cuts in January next year.

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