Consumers attended and spent in a “deliberate way” ahead of the holidays, Michelle Mayer, chief economist at the MasterCard Economics Institute, said in a press release.
“The economic backdrop remains favorable with healthy job creation and easing inflation pressures, enabling consumers to seek out the goods and experiences they value most,” Mayer said.
Online shopping accounted for a large share of the increase, with online retail sales increasing by 6.3%, compared to a jump of just 2.2% for in-person shopping. Apparel sales rose 2.4%, while strong demand for in-person dining led to a 7.8% increase in restaurant spending.
There were some categories that showed declines. For example, jewelry sales decreased by 2 percent while electronics sales decreased by 0.4 percent.
One factor is that retailers started their promotions early in the season, giving consumers time to search for the best deals, said Steve Sadoff, a senior advisor at Mastercard and former CEO of Saks Incorporated. “It was ultimately about getting the most for your money as consumers spent on a wider variety of goods and services, reemerging pre-pandemic spending trends,” Sadoff said in a statement.
It’s the latest of many reports showing that consumer spending has remained strong, and perhaps better than ever, as the holidays approach. Sales on Black Friday hit a record $9.8 billion, up 7.5 percent from the previous year, while Cyber Monday came in even higher at $12.4 billion, according to Adobe Analytics.
This is a developing story and will be updated.