Retail sales grow 7.6% during holidays, but consumers turn cautious: Mastercard data

(Reuters) – U.S. retail sales rose 7.6% between Nov. 1 and Dec. 24, including most of the holiday season.

This growth was faster than Mastercard’s forecast of a 7.1% increase in September, as consumers are expected to start shopping in October after the first transaction.

But year-end retail sales growth this year fell 8.5% year-on-year as decades of high inflation, rising interest rates and the threat of a recession made consumers more cautious about prices. did.

Retailers such as Amazon.com Inc and Walmart Inc in the United States offer significant discounts during the holiday season to clear excess inventory and return to normal levels.

This drove demand for everything from toys to electronics in the five days from Thanksgiving to Cyber Monday.

But electronics sales fell 5.3% in the long two months, according to Mastercard SpendingPulse.

However, apparel and restaurant sales increased by 4.4% and 15.1% respectively, contributing to overall sales growth.

According to Mastercard, online sales grew 10.6% in the same period, just below last year’s 11% growth.

Meanwhile, another of his SpendingPulse reports, published by Mastercard in late November, showed virtual weekly retail sales up about 11%.

Mastercard SpendingPulse tracks all payment methods’ in-store and online retail sales. This is not included in the car sale.

(Reporting by Anania Mariam Rajesh and Ann Maria Shibu on her in Bangalore; Editing by Sinjini Ganguly and Savio D’Souza)

Mastercard predicts a 7.4% increase in retail sales over the holiday period.

According to a press release emailed to PYMNTS, Mastercard applauds retailers ahead of the 2021 holiday shopping season.

Financial services giant Mastercard SpendingPulse forecasts what the company calls “the best retail season ever” based on credit card, cash, and check sales across multiple categories.

This study considers spending from November 1 to December 24 and from October 11 to December 24. The biggest winner is retail sales, a segment expected to grow at around 90% annually through 2021 compared to the same period in 2020.

According to Mastercard SpendingPulse, all sales in 2021, excluding auto and gasoline sales, were up 7.4% over traditional sales in 2020 over the traditional November 1-December 24 periods, and are expected to rise 0.1% over traditional sales in 2019. It’s possible. In 2021, e-commerce sales are expected to grow 7.6% compared to 2020 and 57.3% compared to 2019, while physical sales are expected to increase by 6.6% compared to 2020.

By category, year-end and New Year sales in 2021 are expected to exceed similar sales in 2020. Clothing 45.9%, electronics 13.2%, jewelry 59.0%, luxury goods 92.8%, and department stores 14.8%. In 2021 and 2019, the figure by category increased by 17.8% in clothing, 17.9% in electronics, 52.9% in jewelry, 55.8% in luxury goods, and 5.2% in large stores.

The Mastercard SpendingPulse has been extended from October 11 to December 24, 2021, bringing total revenue excluding auto and gas sales to 6.8% of 2020 equivalent revenue and expected to exceed 7.5% for 2019 equivalent revenue. In 2021, e-commerce sales are estimated to grow by 7.5% compared to 2020 and 59.3% compared to 2019.

According to Category Research, long-season sales in 2021 are expected to exceed similar sales in 2020. Clothing 45.4%, electronics 11.8%, jewelry 60.0%, and luxury goods 92%. 14.0% of items purchased at department stores. Performance by category for the traditional 2021-2019 season increased by 15.9% for clothing, 17.4% for electronics, 54.7% for jewelry, 54.2% for luxury goods, and 4.7% for department stores.

2022 Approaches No Holy Communion: What You Need To Know This Week

Wall Street is betting big on a year-end rally to give markets a steady boost after the rocky December days.

25 December 2022 (Sunday) 17:30 GMT+5:30 Reads in 5 minutes

As 2022 draws to a close, Wall Street’s brutal year ends this week.

Stock and bond markets in the US are closed on Monday, December 26, due to Christmas celebrations.

The income statement and financial calendar are thin as most of the world’s companies are out of business next year.

Holiday traders get data on wholesale and retail promotions, weekly jobless claims, and the latest S&P CoreLogic Case-Shiller Home Price Index.

When investors return from a longer-term perspective on Tuesday, they will have high hopes for Santa Claus Rising, the stock market’s seasonal rally that occurs in late December. However, the weather may turn favorable this year as selling pressure continues and fears of recession ease.

Santa Claus Rally, usually defined as the last five trading days of the year and the first two days of the new year, was founded in 1972 by Jerhash, founder of the Armagnac trading class. He did

The S&P 500 has gained an average of 1.3% since 1950, according to LPL Financial. This compares to an average return of 0.2% on a 7-day continuous return.

More importantly, the Santa Claus rally is often seen as a sign of the future for the market. Historically, the S&P 500 fell in January, and the following year suggests that LPL Financial’s earnings have not recovered at the end of the year.

Yale Hirsch prophesied: “If Santa doesn’t call, the bears will come to the fences and walls.”

“It’s never too late for a birthday rally,” observed Chris Zaccarelli, “but sadly, the positive inflation data has outrun X’s diatribe, and a recession is imminent in tandem with inflation.” a chief investment officer of the Federation of Independent Advisers. said in the note.

2022 was its worst annual performance since the 2008 global financial crisis, a stock market rally was followed by a sharp decline in 2021 with the S&P 500 rebounding nearly 27%.

It was supported by China’s overt actions; Dollar Weakness: Market Overview

(Bloomberg) — Stocks rose on Tuesday as the dollar weakened on bullish support from China’s easing of coronavirus lockdown measures and lower core inflation.

Stocks rose in China, Japan, and South Korea, while travel and consumer goods rose in Tokyo and Seoul after China lifted quarantines on inbound visitors.

US and European stock futures also edged up, helped by data on Friday showing the main US Federal Reserve index fell, and consumer spending remained flat.

US, Asian and global stocks are also down about 20% this year, their worst annual performance since 2008.

Whether the rally in Asian stocks will be more sustainable after the China open depends on how many Chinese consumers spend and how it affects corporate earnings, Han Jiong, an analyst at Qiwoom Securities, said in a statement.

In markets, expectations of Chinese demand as the economy recovers, pushed oil prices higher on Tuesday, as the cold weather in the United States, caused them to drop precipitously.

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