Budgets tighten but spending doesn't decrease! U.S. holiday season retail sales increased by 4% year-on-year.

According to preliminary data released by Visa (V.US) and MasterCard (MA.US) on Tuesday, during this holiday season, despite facing pressure from tightening budgets, American consumers' demand for electronic products and new clothing remains strong, driving a year-on-year increase of about 4% in retail sales for American retailers. Wayne Best, Chief Economist at Visa, stated that consumers' shopping decisions are becoming more rational and cautious, with many using AI tools to search for products, compare prices, and maximize the use of disposable budgets. Michelle Meyer, Chief Economist at MasterCard Economics Institute, added that consumers have started their holiday shopping early and actively take advantage of various promotional activities to achieve the best value for their purchases. It is worth noting that retailers have launched promotions early to secure sales volume, and data from the two payment giants based on billions of transactions on their networks indicate that consumer resilience continues into December. Specifically, according to Visa's statistics, retail sales in the United States (excluding cars, gasoline, and dining expenses) from November 1st to December 21st grew by 4.2% year-on-year, slightly lower than the full two-month forecast of 4.6% in October. MasterCard's data covers retail and dining stores, with sales rising 3.9% year-on-year during the same period, surpassing the earlier growth expectation of 3.6%. It should be noted that the data released by both institutions have not been adjusted for inflation. Both companies mentioned that early promotions and the convenience of online shopping have driven online sales growth to surpass that of physical stores. However, Visa also pointed out that offline stores still dominate consumer spending, with a transaction ratio of 73% offline and 27% online. In terms of categories, growth in consumption is led by electronic products. Visa data shows that sales of electronic products such as TVs and smartphones increased by 5.8% year-on-year, followed closely by clothing and accessories, with a growth rate of 5.3%. MasterCard stated that seasonal promotions and cold weather have stimulated the demand for new clothing, and jewelry has also gained more favor from consumers this year.