US consumers dig deep for holidays

They shell out 3.9% more than last year

- KIM BHASIN

Tariffs, a government shutdown, rising unemployment and persistent inflation have all added stress to the US economy. And whether any of that might put a dent on consumer spending has been a subject of speculation.

At least part of the answer came Tuesday when Mastercard released its annual data on holiday spending. Shoppers spent 3.9% more from Nov 1 to Dec 21 this year compared with last year, according to the report, called SpendingPulse, which measures retail sales in stores and online through payment data.

The figures, which exclude automotive sales and are not adjusted for inflation, show that spending has remained resilient, with consumers visiting stores and restaurants even as prices have risen. Still, the report also showed that shoppers looked for value, comparing prices in stores and online, and buying items at a discount.

The results provide a peek into the mindset of US consumers as they enter 2026, trying to manage their households amid an uncertain economy.