PURCHASE, N.Y.—U.S. retail sales excluding automotive were up +8.8% year-over-year in January, according to Mastercard SpendingPulse data, which measures in-store and online retail sales across all forms of payment.
E-commerce sales were up +8.4% YOY, while in-store sales were up +8.9% YOY. Mastercard SpendingPulse reflects nominal spending and is not adjusted for inflation, the company said.
"Consumer spending remains resilient in the first few weeks of 2023,” said Steve Sadove, Mastercard Senior Advisor and Former CEO of Saks, Inc. “Mastercard SpendingPulse insights show that the overall retail story remains largely positive with January posting a solid month of growth across the country.”
The Key Trends
At a national level, key retail trends from January include:
- Restaurant sector shows strength. Coming off the holidays and a strong year of growth in 2022, spending at Restaurants remained a top priority for consumers, up +24.2% YOY. “This remains consistent with trends we saw throughout the holidays and a broader shift of consumer spending on services,” Mastercard said.
- Jewelry sector experiences growth. After nine months of stagnant growth, Jewelry was up +6.5% YOY, potentially reflecting early Valentine’s Day shopping.
- Housing related sectors soften. As a result of the decline in home sales throughout 2022, Furniture & Furnishings (-1.2% YOY) continued to experience softened growth with many projects limited to home enhancements rather than new builds.
Expectations for Income
"The primary factor driving spending decisions is income – not just income today but the expectation for income tomorrow,” said Michelle Meyer, North America chief economist, Mastercard Economics Institute. “The strength in the labor market remains a critical support for consumer purchasing power and we’re seeing this reflected in our SpendingPulse insights for January.”
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