US Consumers Spend ‘Robustly’ After Almost $1 Trillion Holiday

After a nearly $1 trillion holiday season, U.S. consumer spending shows no sign of slowing.

The exact figure is $994 billion, according to recent findings from the National Retail Federation. And as the Financial Times (FT) reported Sunday (Jan. 19), earnings from America’s largest bank show heightened consumer spending as well.

Consumers spent a total of $924 billion with credit/debit cards issued by Bank of America, Citigroup, JPMorgan Chase and Wells Fargo in the closing quarter of 2024. That was 5% higher than the previous quarter and the largest year-end increase in three years.

Spending was still “growing robustly” at the beginning of this January, JPMorgan analyst Bennett Parrish noted, citing the bank’s card data.

“Consumers are doing their thing, driving the economic train,” Mark Zandi, chief economist at Moody’s Analytics, told the FT. “There are no real signs that the growth of spending is slowing.”

Target recently upgraded its sales guidance, citing stronger revenue from toys and cosmetics during the holidays.

“The American consumer is resilient and strong,” Rick Gomez, Target’s chief commercial officer, said at an industry conference this week, per the FT.

Gomez added shoppers were “resourceful” and “intentional,” working to extend their budgets and buy items that were important to them.

The FT report noted that retail sales figures are not adjusted for inflation, which has stuck around since the pandemic. New government data shows core inflation, which excludes volatile food and energy costs, dropped to 3.2% in December from 3.3% the previous month.

Another snapshot of consumer resilience appeared last week in the form of December retail sales as recorded by the Census Bureau.

“And beyond the month’s snapshot, looking back through the 12 months of a volatile year, eCommerce was a standout — even as shoppers went back into the physical aisles to touch the merchandise and transact,” that report said.

The data showed a 0.4% increase in retail sales month over month. And although “headline” data fell short of consensus estimates, PYMNTS noted that the monthly change comes off an upwardly revised November reading that marked an 0.8% gain over October’s levels.

“The finish line, so to speak, has been crossed for 2024, and the momentum stands in contrast to the consumer mindset that had dominated the beginning of — and all through — the year,” that report added.