US retail sales rose 3.1% this holiday season — sharp drop from 7.6% last year: report

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2 years ago

December 27, 2023

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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.

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Two dead and a million evacuated as Super Typhoon Fung-wong hits Philippines

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2 hours ago

November 10, 2025

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Two dead and a million evacuated as Super Typhoon Fung-wong hits Philippines

Two people have died and more than one million people evacuated after a storm bearing down on the Philippines intensified into a super typhoon and made landfall on Sunday.

Fung-wong started battering eastern and central parts of the country, causing power outages, and forcing President Ferdinand Marcos Jr to declare a state of emergency.

One person drowned in Catanduanes and firefighters recovered the body of a woman trapped under the debris of a collapsed home in Catbalogan City, officials said.

Packing sustained winds of 115mph and gusts of up to 140mph, Super Typhoon Fung-wong made landfall in Aurora province in central Luzon.

Those living in high-risk villages in northeastern provinces were told to evacuate, including in Bicol, a coastal region vulnerable to Pacific cyclones and mudflows from Mayon, one of the country’s most active volcanoes.

Defence secretary Gilberto Teodoro Jr warned Fung-wong could affect a vast expanse of the country, including the capital Manila, and Cebu, the central province hit hardest by the deadly Typhoon Kalmaegi just days ago.

More than 200 people were killed in the earlier typhoon, and around 100 are still missing.

Mr Teodoro Jr urged residents to heed evacuation orders, warning refusing to comply was dangerous and unlawful.

“We ask people to pre-emptively evacuate so that we don’t end up having to conduct rescues at the last minute, which could put the lives of police, soldiers, firefighters and coast guard personnel at risk,” he said in a public address.

More than 30 million people could be exposed to hazards posed by Fung-wong, the Office of Civil Defence said.

In Isabela in northern Luzon, dozens of families were sheltering at a basketball court repurposed as an evacuation centre.

“We’re scared,” said Christopher Sanchez, 50, who fled his home with his family. “We’re here with our grandchildren and our kids. The whole family is in the evacuation area.”

Nearly 400 domestic and international flights have been cancelled, according to the civil aviation regulator.

Deadly tornado in Brazil

Meanwhile, a powerful tornado ripped through the southern state of Parana in Brazil – killing at least six and injuring more than 750 people, state officials said on Saturday.

The tornado left a trail of destruction, downing trees, overturning vehicles and damaging buildings.

Roads were also blocked and power lines damaged, with authorities saying around 1,000 people were displaced,

“We will continue to assist the people of Parana and provide all the help needed,” President Luiz Inacio Lula da Silva wrote on X.

World

UK deploying specialist RAF team to defend Belgium from ‘rogue’ drones

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2 hours ago

November 10, 2025

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UK deploying specialist RAF team to defend Belgium from 'rogue' drones

The UK is deploying a specialist Royal Air Force team to help defend Belgium’s skies following a series of sightings of “rogue” drones, the defence secretary and his military chief have revealed.

The ground-based unit will be equipped with kit that can track and take down unmanned aerial systems.

It is not yet clear who is responsible for the drone incursions, which forced the country’s main airport near Brussels to close temporarily and have also impacted Belgian military bases.

However, there are suspicions that they could be linked to Russia.

Other NATO nations have also experienced similar problems, including Denmark and Germany.

Ukraine war latest: Lavrov ‘ready’ to meet US’s Rubio

Air Chief Marshal Sir Rich Knighton, speaking to Trevor Phillips on Sky News, said his Belgian counterpart had called him to request British support.

“I had my Belgian opposite number – the chief of the defence staff – in touch with me this week, seeking our help to track and potentially defeat the drones,” he said.

“We agreed with the defence secretary on Friday that we would send our people and our equipment into Belgium to help them with the current problem they have got there.”

John Healey, the defence secretary, said: “When our NATO allies call, we step up. Belgium requested urgent support to counter rogue drone activity at their military bases, so I’ve directed a small team of RAF specialists to deploy immediately.

“As hybrid threats grow, our strength lies in our alliances and our collective resolve to defend, deter and protect our critical infrastructure and airspace.”

The RAF team is trained and equipped to combat drones.

World

Three dead and 15 injured in Tenerife tidal surge

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2 hours ago

November 10, 2025

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Three dead and 15 injured in Tenerife tidal surge

Three people have died after they were swept into the sea off the coast of Tenerife during treacherous weather, officials said on Sunday.

Strong waves pulled them into the Atlantic Ocean during a tidal surge on Saturday.

A man who had fallen into the water at Charco del Viento, a rocky beauty spot in the north of the island not far from Icod de los Vinos, was airlifted to hospital and was pronounced dead on arrival, Spanish media reported.

In a separate incident, a man was found floating off Cabezo beach in El Medano in the south of the island.

Lifeguards and paramedics were unable to resuscitate him and he was pronounced dead at the scene.

A woman suffered a heart attack and died when a wave swept several people into the sea at Puerto de la Cruz in northern Tenerife. Three people were seriously injured and taken to hospital for treatment.

The victim was a 79-year-old Dutch woman, according to El Dia.

The Spanish newspaper reported the deceased at Charco del Viento was a 43-year-old man from La Orotava, a town in northern Tenerife, while the identity of the man who died at Cabezo beach had not been released.

Around 15 people were injured in four different incidents along the coast of the island of Tenerife on Saturday, according to emergency services.

Authorities had warned people of a tidal surge and strong winds, advising them not to walk along coastal paths and avoid putting themselves at risk by taking photos and videos of the rough seas.

The Canary Islands, a Spanish archipelago off the west coast of Africa that includes Tenerife, are on alert for coastal hazards, officials said.