Americans spent like crazy during the holidays because of high inflation

Funviralpark 1 year ago 0 4

New York

Americans spent more this holiday season as inflation forced consumers to spend more on retail goods and dining experiences.

According to the Mastercard Spending Pulse, released on Monday, U.S. retail sales increased 7.6% for the period from November 1 to December 24 compared to the same period last year. The index tracks physical and online retail sales across all payment methods, excluding car sales, and is not adjusted for inflation.

The report is a welcome sign given that U.S. retail sales were sluggish in November due to lower consumer spending, despite a high turnout on Black Friday. Still, much of the year-over-year increase in consumer spending over the holiday season is likely due to inflation.

The Personal Consumption Expenditure Price Index, the Federal Reserve’s favorite measure of inflation, rose 5.5% in November from a year earlier, the Department of Commerce reported on Friday.

“Consumers and retailers have weathered the season well, demonstrating resilience amid mounting economic pressures,” said Michelle Mayer, chief economist for North America at Mastercard Economics Institute, in a statement.

According to Mastercard, consumers have diversified their spending to cope with rising prices and prioritization of dining out and other experiences. The restaurant’s sales increased by more than 15% he compared to the same period last year.

American shoppers also increasingly prefer online shopping, with online sales growing 10.6% year-over-year and e-commerce accounting for 21.6% of total retail sales, up from 20.9% in 2021. I’m here.

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