Consumers showed up and spent “in a deliberate manner” heading into the holidays, Mastercard Economics Institute chief economist Michelle Meyer said in a news release.
“The economic backdrop remains favorable with healthy job creation and easing inflation pressures, empowering consumers to seek the goods and experiences they value most,” Meyer said.
Online shopping accounted for a large share of the increase, with online retail sales increasing 6.3 percent, compared to just 2.2 percent jump for in-person shopping. Apparel sales rose 2.4 percent, while strong demand for in-person dining powered a 7.8 percent jump in restaurant spending.
There were some categories that showed declines. Jewelry sales, for example, fell 2 percent while electronics declined 0.4 percent.
One factor was that retailers started their promotions early this season, giving consumers time to hunt for the best deals, said Steve Sadove, a senior adviser at Mastercard and the former CEO of Saks Incorporated. “Ultimately it was about getting the most bang for your buck as consumers spent on a variety of goods and services, resurfacing spending trends from before the pandemic,” Sadove said in a release.
It’s the latest of several reports to show consumer spending remained strong, perhaps better than ever heading into the holidays. Sales on Black Friday set a record of $9.8 billion, up 7.5 percent from the year before, while Cyber Monday came in even higher at $12.4 billion, according to Adobe Analytics.
This is a developing story and will be updated.