NEW YORK – U.S. vacation sales have increased this year, a sign that consumer spending remains strong despite rising prices on everything from food to rent, according to one indicator.
Holiday sales were up 7.6% from 8.5% last year as people started spending what they saved during the early part of the pandemic, according to Mastercard SpendingPulse, which tracks all kinds of purchases, even with cash and credit cards.
Mastercard SpendingPulse anticipated a 7.1% increase. Data released on Monday excludes the auto industry and is not adjusted for inflation, which fell slightly but remains high.
Sales in the US between Nov. 1 and Dec. 24, a critical period for retail stores, were boosted by apparel and restaurant spending.
By category, apparel purchases increased 4.4%, while jewelry and electronics purchases decreased 5%. Online sales were up 10.6% year over year and in-person sales were up 6.8%. Department stores posted a modest 1% increase over 2021.
“This sales season has looked a little different than in years past,” Steve Sadove, former president and CEO of Saks and an advisor to Mastercard, said in a statement. “Retail chains have slashed prices, but consumers have diversified their seasonal spending to accommodate higher prices and reflect a greater appetite for post-pandemic holiday experiences and gatherings.”
Part of the increase reflects the increased prices of all items.
Consumer spending accounts for nearly 70% of economic activity in the United States, and Americans have remained resilient since inflation peaked nearly 18 months ago.
