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U.S. retail sales grows 7.6% in holiday season -Mastercard data

Published 12/26/2022, 08:18 AM
Updated 12/26/2022, 08:20 AM
© Reuters. FILE PHOTO: People shop on Christmas Eve in Manhattan, New York City, U.S., December 24, 2022. REUTERS/Jeenah Moon

(Reuters) - U.S. retail sales rose 7.6% between Nov. 1 and Dec. 24, which encompasses a majority of the holiday season, as steep discounts lured deal-hungry consumers, a Mastercard (NYSE:MA) report showed on Monday.

The increase is higher than the 7.1% growth Mastercard had forecast in September, when it anticipated consumers would pull purchases to October in the hunt for early deals.

However, this year's holiday retail sales growth is less than the 8.5% increase last year as decades-high inflation, rising interest rates and the threat of a recession turned consumers cautious.

Retailers including Amazon.com Inc (NASDAQ:AMZN) and Walmart (NYSE:WMT) Inc in the United States offered large discounts during the holiday season to get rid of excess stock and bring back inventories to normal levels.

That led to strong demand for everything from toys to electronics during the five-day-long period between Thanksgiving and Cyber Monday.

However, sales of electronics dropped 5.3% over the broader roughly two-month period, according to the Mastercard SpendingPulse report.

But sales in the apparel and restaurants categories, rose 4.4% and 15.1%, respectively, helping boost the overall number.

Online sales jumped 10.6% in the period, slightly less than the 11% increase last year, the Mastercard report said.

Meanwhile, during the cyber week, total retail sales had jumped about 11%, a separate Mastercard SpendingPulse report in late November showed.

Mastercard SpendingPulse measures in-store and online retail sales across all forms of payment. It excludes automotive sales.

Latest comments

If sold at steep discounts inflation is not a factor so that's real sales.
A little more work on the downside, after a little rally to close some gaps. Then 23 looks good till real recession sets in 4th quarter. Then 08 type of crash.
Economy super strong. Higher interest rates for longer...
Good short-term news, but people always spend at Christmas time, waiting for reality of inflation to bite during 1st quarter, recession will set in after that
no matter, this is pretty bullish. Consumer good, no recession, soft landing
winter, people will penny-pinch ahead as the brakes will be put on spending, RECESSION by April
The numbers are not adjusted for inflation, and every person buying goods in stores knows that 7.6% annual increase is significantly less than real price inflation. In other words, people buy less amount of good, while paying higher unit prices.
If it's 7.6%more compared to the previous months inflation doesn't really matter, if it's compared to an average then yes, inflation is included.
No it's due to Christmas.
Geniuses comparing annual inflation rate to monthly rate of sales increase rate.
Is this number from MasterCard adjusted for inflation?
Man you keep stating things without any knowledge about. How do you live with yourself?
@warm camp
 Comparing to your empty head, every other one is full of knowledge.
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