The holiday season is often synonymous with gatherings of family and friends, but also with spending. This year, despite inflation and recession fears, spending increased again.
Specifically, as reported by Mastercard's SpendingPulse tracker, retail sales, excluding the automotive market, increased 7.6% between Nov. 1 and Dec. 24. Admittedly, this represents a lower increase than that recorded for the 2020-2021 academic year, when it rose by 8.8%, but it is also higher than the 7.1% forecast for 2022.
During Black Friday, the report details that, retail sales rose by 12% and online shopping registered an increase of 10.6%. Data that eases the market somewhat, as stated by Steve Sadove, senior advisor to Mastercard and former CEO and president of Saks Incorporated:
This holiday retail season looked different than years past. Retailers discounted heavily but consumers diversified their holiday spending to accommodate rising prices and an appetite for experiences and festive gatherings post-pandemic.
The desire to get together was displayed in the restaurant numbers. According to the website, these venues showed a year-on-year increase of 15.1%, mainly due to the recovery of traditions such as gatherings with co-workers and dinners with friends and family. This was explained by Michelle Meyer, chief economist for North America at the Mastercard Economics Institute:
Inflation altered the way U.S. consumers approached their holiday shopping – from hunting for the best deals to making trade-offs that stretched gift-giving budgets. Consumers and retailers navigated the season well, displaying resilience amid increasing economic pressures.
