Retail spending over the holiday season surged to the highest in six years as the GOP-led tax cuts and a strong U.S. economy buoyed consumer sentiment.
Between Nov. 1 and Dec. 24, retail spending grew 5.1 percent to $850 billion, according to a Mastercard SpendingPulse report released on Wednesday. Apparel sales climbed 7.9 percent, and home improvement spending grew 9 percent.
“From shopping aisles to online carts, consumer confidence translated into holiday cheer for retail,” Steve Sadove, senior adviser for Mastercard, said in a statement. “By combining the right inventory with the right mix of online versus in-store, many retailers were able to give consumers what they wanted via the right shopping channels.”
Experts were anticipating a strong holiday shopping season, as the retail industry at-large performs well.
Still, department stores struggled during the holiday season, Mastercard said, with sales dropping 1.3 percent. And the latest data arrives against the backdrop of a swooning stock market that has stoked fears that the U.S. economy could lose momentum in 2019.
The top equity markets plunged on Monday, days after the Federal Reserve’s decision to raise interest rates for the fourth time this year sent markets into a downward spiral.
The Dow Jones Industrial Average, the blue-chip Nasdaq and the broader S&P 500 were all up in trading on Wednesday.
