Shoppers Spent Big This Holiday Season, Despite Economic Pressures

Tariffs, a government shutdown, rising unemployment and persistent inflation have all added stress to the U.S. 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 on Tuesday when Mastercard released its annual data on holiday spending. Shoppers spent 3.9 percent 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 mind-set of U.S. consumers as they enter 2026, trying to manage their households amid an uncertain economy.

Though Americans are dealing with the rising costs of groceries, child care and rent as job growth slows, many are still opening their wallets to buy holiday gifts and items on their own wish lists. Some are doing so by deferring the bill. According to an October PayPal report, half of consumers said they planned to use buy now, pay later plans to finance holiday purchases.

“There’s still consumers who are a little on edge,” said Michelle Meyer, chief economist of the Mastercard Economics Institute. “But that hasn’t constrained them from spending in the short term.”