US holiday sales are likely to see their strongest increase in four years, as rising wages and household wealth support spending, according to Mastercard.
Sales are forecast to advance 6% year on year between November 1 and December 24, Mastercard said Wednesday. The group projected spending would grow across channels, with in-store sales gaining 3.6% and online sales improving 11%.
Higher prices are also expected to drive about half of the increase in outlay, continuing a trend that started in recent holiday seasons. This year, the rise is being fueled by elevated energy costs and artificial intelligence (AI)-driven demand, Mastercard added.
Like in 2025, Thanksgiving will fall relatively late, shortening the period between Thanksgiving and Christmas and potentially leading retailers to begin promotions earlier. However, Cyber Monday will take place in November this year, shifting more online sales into the month.
Image: Holiday shopping. (Shutterstock)
