Americans' Holiday Spending Falls Short of Last Year's Spike

Americans' holiday spending between November 1 and December 24 surged 3.1 percent from last year, but spending for the same period in 2022 was up more than 7 percent from 2021, according to a new report from Mastercard.

In September, Mastercard predicted that retail sales would increase by 3.7 percent year-over-year as a result of lowered inflation, increased product demand, savings and increasing wages.

"This holiday season, the consumer showed up, spending in a deliberate manner," Michelle Meyer, the chief economist of Mastercard Economics Institute, said in a statement. "The economic backdrop remains favorable with healthy job creation and easing inflation pressures, empowering consumers to seek the goods and experiences they value most."