Categories that stood out the most were clothing, with a growth of 3.6%, electronics, which increased by 3.7%, and jewelry, which increased by 4%
The 2024 holiday season showed us a surprising performance, with a 3.8% increase in consumer spending compared to the previous year, according to data from Mastercard. The period analyzed covered from November 1st to December 24th, exceeding the 3.2% growth expectation that had been projected by the company. The categories that stood out the most were clothing, with a growth of 3.6%, electronics, which increased by 3.7%, and jewelry, which increased by 4%. Michelle Meyer, chief economist at the Mastercard Economics Institute, highlighted that these numbers reflect consumer strength, supported by a strong job market and increasing household wealth.
Between 2019 and 2022, American household wealth grew 37%, while the unemployment rate remained around 4%. Households with higher incomes, which are responsible for the majority of discretionary spending, benefited from appreciation in the stock and real estate markets, which contributed to increased spending.
Although consumers were willing to spend, there was a concern about budgeting, which resulted in significant growth in e-commerce. Online retail sales increased by 6.7%, while in-store sales saw a more modest growth of 2.9%. During Black Friday, online sales reached US$41.1 billion, representing an increase of 8.2% compared to the previous year.
*Report produced with the help of AI
Published by Fernando Dias
