US retail sales rise 7.6 percent during holidays

U.S. retail sales rose 7.6 percent during the holidays this year, despite inflation pressures and recession fears.

The year-over-year bump recorded by Mastercard’s SpendingPulse tracker during the holiday period of Nov. 1 through Dec. 24 was lower than the 8.8 percent increase from 2020 to 2021, but exceeded the 7.1 percent forecasted this year.

Black Friday sales were up 12 percent from last year, and online sales were up 10.6 percent. 

E-commerce made up slightly more of the total retail sales this year, 21.6 percent, than in the previous two years.

Restaurant dining was also up 15.1 percent year-over-year as the U.S. eases away from pandemic restrictions and consumers seek in-person experiences.  

“Retailers discounted heavily but consumers diversified their holiday spending to accommodate rising prices and an appetite for experiences and festive gatherings post-pandemic,” said Mastercard senior adviser Steve Sadove, the former chairman and CEO of Saks, Inc. 

Consumer spending accounts for nearly 70 percent of economic activity in the U.S., and inflation has strained Americans’ pocket books as the cost of necessities — like gas and grocery store prices — have gone up, cutting at consumers’ extra cash to spend on retail and holiday goods.

Inflation has begun to fall back from record highs earlier this year but remains elevated even as the Federal Reserve hikes up interest rates. Those efforts, aimed at quelling the high costs, have stoked concerns about a looming recession.

Mastercard’s SpendingPulse measure of recorded retail sales excluded automotives.