US holiday sales below forecast, grew less compared to last year: Mastercard

U.S. holiday sales grew by 3.1% compared to the same time period last year, but it is still less than forecast and significantly below the growth in sales that occurred from 2021 to 2022, according to a report released Tuesday by Mastercard. 

The annual report tracks sales from Nov. 1 through Dec. 24, without adjusting for inflation, and while December's inflation numbers have not been released, inflation hit 3.1% in November 2023 compared to the same time last year. This means that at least for November, net sales may not have increased at all.

Mastercard had predicted in September that retail sales over the holiday season would grow by 3.7%. Last year's holiday shopping report from Mastercard showed that sales increased 7.6% compared to 2021.

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

Online sales also grew at a slower rate from last year, with 6.3% growth in 2023 compared to 10.6%. In-store sales increased 2.2% in 2023 compared to 6.8% in 2022.

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