Inflation-battered shoppers cut back on their holiday spending this year — opening their wallets mainly for “big deals,” according to industry experts and newly released figures.
US retail sales rose just 3.1% year-over-year between Nov. 1 and Dec. 24 — well short of analyst forecasts of 3.7% and less than half of the 7.6% spike recorded last year, according to Mastercard.
Amazon and Walmart ramped up promotions through November to entice bargain-hunting shoppers, but analysts said the discounts were not as deep as the prior year when retailers were saddled with excess stock after the pandemic.
Arun Sundaram, an analyst at CRFA Research, said many shoppers waited for Black Friday and Cyber Monday to make holiday purchases and finished the final sprint during Super Saturday — the last shopping day before Christmas.
“Consumers are still spending, but they’re still price conscious and want to stretch their budgets,” Sundaram said.
He said the weeks between Cyber Monday and Super Saturday were a “soft period” for spending, but shoppers used the final weekend before Christmas to look for “big deals.”
Online shopping accounted for a large chunk of this year’s holiday spending. According to the Mastercard report, online retail sales jumped by 6.3% year-over-year, while in-store sales rose just 2.2%.
Apparel sales jumped 2.4%, while in-person dining at restaurants soared by 7.8%, according to the report.
There were declines in sales of jewelry (2%) and electronics (0.4%).
Ultimately, it was about getting the most bang for your buck as consumers spent on a variety of goods and services, resurfacing spending trends from before the pandemic, Mastercard senior adviser Steve Sadove said.
Americans have been saddled with soaring prices in recent years though there have been signs inflation is beginning to cool.
The Fed’s preferred measure of inflation — the Personal Consumption Expenditures price index (PCE) — rose less than expected in November.
According to the Bureau of Economic Analysis, core inflation, which excludes food and energy costs, rose 0.1% compared to October.
That was lower than the 0.2% rise forecast by economists polled by Reuters. The year-over-year increase was 3.2%, lower than Octobers 3.4% gain.
The figures signal that the Fed is winning a nearly two-year battle against inflation and further increase the odds for lower interest rates in the new year.
The Federal Reserve has signaled that it intends to slash interest rates which are currently between 5.25% and 5.5% by as much as 75 basis points in 2024.
Projections from all 19 policymakers that showed near unanimity that borrowing costs would fall next year, many of them by a substantial margin following their latest policy meeting earlier this month, when borrowing costs held steady at their 22-year high.
Russia launched a massive missile and drone attack on Ukraine overnight, after US and Ukrainian officials said they would meet for a third day of talks aimed at bringing the war to an end.
The two sides said they had made progress on a security framework for post-war Ukraine, but that any “real progress toward any agreement” will depend “on Russia’s readiness to show serious commitment to long-term peace.”
Russia launched 653 drones and 51 missiles in its attack on Ukraine, triggering air raid alerts across the country, Ukraine’s air force said.
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Giving up territory ‘unacceptable’ – Ukraine’s military chief
Ukrainian forces shot down and neutralised 585 drones and 30 missiles, the air force said, adding that 29 locations were struck.
At least eight people were wounded in the attacks, Ukraine’s minister of internal affairs Ihor Klymenko said.
Russia conducted a “massive missile-drone attack” on power stations and other energy infrastructure in several regions, Ukraine’s national energy operator Ukrenergo said on Instagram.
Ukraine’s Zaporizhzhia nuclear power plant temporarily lost all off-site power overnight, the International Atomic Energy Agency said.
The plant is in an area that has been under Russian control since early in Moscow’s invasion of Ukraine. It is not in service, but needs reliable power to cool its six shutdown reactors and spent fuel in order to avoid any catastrophic nuclear incidents.
Image: Russia struke a train station in the city of Fastiv. Pics: Reuters
Zelenskyy condemns ‘meaningless’ strikes
Ukrainian President Volodymyr Zelenskyy condemned the strikes as “meaningless” from a military point of view.
He said energy facilities were the main targets, but a drone strike had “burned down” a train station in the city of Fastiv, in the Kyiv region.
“The Russians’ goal is to hurt millions of Ukrainians, and they have sunk so low that they are launching missiles at peaceful cities on St. Nicholas Day,” he said.
“That is why additional pressure is needed. Sanctions must work, and so must our air defence, which means we must continue to support those who defend our lives.”
Ukraine strikes oil refinery
Meanwhile, Russia’s defence ministry said its air defences had shot down 116 Ukrainian drones over Russian territory overnight.
The General Staff of the Ukrainian Armed Forces said Ukrainian forces had struck Russia’s Ryazan Oil Refinery, while Russian Telegram news channel Astra shared footage appearing to show a fire breaking out and plumes of smoke rising above the refinery.
Over the last few months, Ukraine has used long-range drones to target Russian refineries in an attempt to deprive Moscow of the oil export revenue it needs to continue the war.
Meanwhile, Kyiv and its Western allies say Russia is trying to cripple Ukraine’s power grid and deny civilians access to heat, light and running water in winter, which Ukrainian officials call “weaponising” the cold.
On Monday, Mr Zelenskyy will meet Sir Keir Starmer in London to discuss the ongoing negotiations mediated by the US, along with French President Emmanuel Macron and German Chancellor Friedrich Merz.
Negotiations on a lasting ceasefire deal for Gaza are at a “critical moment”, the prime minister of Qatar, which has played a key role in brokering the deal, has said.
Sheikh Mohammed bin Abdulrahman said a definitive ceasefire could only happen with a full withdrawal of Israeli troops from the besieged enclave.
The first stage of a ceasefire deal was agreed in October, but violence in Gaza has not stopped. On Saturday alone, seven people were reportedly killed.
Palestinian local health authorities said the victims were from Beit Lahiya, Jabalia and Zeitoun in northern Gaza and included a 70-year-old woman who was killed by a drone strike.
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The Israeli military said that in two separate incidents on Saturday, forces deployed in northern Gaza behind the so-called yellow line of withdrawal agreed in the ceasefire had fired on Palestinian militants who crossed the line, killing three.
The military was unaware of any drone strike, a spokesperson said.
The long-sought ceasefire – and the second one after a first deal fell apart earlier this year – began on 11 October after Israel and Hamas agreed to the first phase of Donald Trump’s 20-point peace plan.
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Despite accusations by both sides of violations, talks on the next phase of the ceasefire deal began almost two weeks ago, with Turkish, Qatari and Egyptian officials meeting in Cairo to discuss the second part of the agreement, including deploying a stabilisation force and body to govern Gaza and oversee reconstruction.
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“We are at a critical moment. It’s not yet there. So what we have just done is a pause,” PM al-Thani said during a panel discussion at the Doha Forum conference in Qatar.
“We cannot consider it yet a ceasefire. A ceasefire cannot be completed unless there is a full withdrawal of the Israeli forces – (until) there is stability back in Gaza, people can go in and out – which is not the case today.”
On Thursday, an Israeli delegation held talks in Cairo with mediators on the return of the body of the last hostage held in Gaza, which would complete an initial part of Mr Trump’s plan to bring an end to the two-year war.
Since the truce started, Hamas has returned all 20 living hostages and 27 bodies in exchange for around 2,000 Palestinian detainees and convicted prisoners.
ARLINGTON, Texas — Cameron Dickey scored right after the first of linebacker Ben Roberts‘ two interceptions in the second half as No. 4 Texas Tech won the Big 12 championship game, and almost certainly locked up a first-round bye in the College Football Playoff, with a 34-7 victory over No. 11th BYU on Saturday.
After investing millions of dollars in the transfer portal, the Red Raiders (12-1) have their first Big 12 title — they are one of only six schools that have been part of all 30 Big 12 seasons. They also are going to the CFP for the first time, though their win prevented the Big 12 from getting a second team in the playoff.
Behren Morton, who didn’t play in Tech’s only loss at Arizona State, threw two touchdown passes to Coy Eakin, and Stone Harrington kicked four field goals for the Red Raiders.
The only losses by BYU (11-2) are to the Red Raiders, including 29-7 in Lubbock four weeks ago before four turnovers in the second half this time. The Cougars will fall out of the top 12 instead of moving up when the new CFP rankings come out Sunday. They likely needed to be in the top 10 for a playoff spot.
Roberts, one of the holdovers on the Tech defense along with fellow linebacker Jacob Rodriguez (13 tackles), got his first interception with about 3 1/2 minutes left in the third quarter when he reached up and deflected the pass by true freshman Bear Bachmeier. On the next play, Dickey took a direct snap and ran untouched 11 yards for a touchdown and 21-7 lead after making the 2-point conversion.
Harrington, who kicked a school-record five field goals against BYU last month, missed a 49-yard field goal attempt after Roberts jumped a route to make a one-handed interception in the fourth quarter.
But in between Roberts becoming the first player with multiple interceptions in one of the 24 Big 12 championship games, transfer Romello Height recovered when Bachmeier fumbled when being sacked. Harrington made a 44-yarder that time.