The Strategist

U.S. retail sales rise by 7.6% over the holiday season

12/27/2022 - 08:58

From November 1 to December 24, retail sales in the US increased 7.6% over the corresponding period in 2021, said Mastercard Spending Pulse, a research division that monitors Mastercard card purchases.

Jorge Láscar
Jorge Láscar
Sales for the holiday season were expected to grow by 7.1%, although the growth was higher than what Mastercard Spending Pulse forecasted in September. However, the figures fell short of the 8.5% increase in retail sales during the holiday season last year.

The possibility of a recession, excessive inflation, and ongoing key rate hikes all caused a slowdown in growth. According to Mastercard SpendingPulse, sales of jewelry and gadgets declined by 5.4% and 5.3%, respectively, throughout the 2022 holiday season. The fact that several big retailers, such as Amazon and Walmart, were offering a wide variety of products at steep discounts in order to reduce their stocks also contributed to overall growth. Sales of apparel increased by 4.4 percent. Restaurant expenditures increased 15.1%, which was a large number. Online sales grew to 10.6%.

"Due to inflation, American consumers no longer prioritize finding the best discounts over saving money to grow their present budgets. The season has been wonderful for consumers and retailers, who have demonstrated resilience in the face of the economic constraints," said Michelle Meyer, a senior economist for North America at the Mastercard Economics Institute, a different division of the business that conducts research.