Consumers cooling off on home products but still spending

Buy, NY – Spending increases in July outpaced the year-over-year monthly growth seen so far in 2022, with demand and rising prices being the two contributing factors.

According to Mastercard SpendingPulse – which measures in-store and online retail sales for all payment methods – non-automotive US retail spending was up +11.2% year-over-year in July, while retail sales excluding motor vehicles and gasoline increased by +9.0%.

Sales growth in the furniture and furnishings sector increased by 5.0%, after the boom last year, but still up 33.2% compared to July 2019.

Other takeaways:

  • In-store sales remained strong – up 11.1% year-on-year and 13.9% from July 2019.
  • E-commerce recorded its first month of double-digit sales growth since December, up 11.7% year-on-year.
  • E-commerce nearly doubled from pre-pandemic levels: +98.5% from July 2019. MasterCard attributed some of the growth to major promotional events in July, which included Amazon Prime Day and sales add-ons offered by competitors.
  • Travel spending was strong in July, with accommodation up 29.6% YoY and airline sales up +13.3% YoY.

“The latest retail trends are emphasizing consumer choice and spending driven by passion – they search for deals, buy across channels, and ultimately continue to spend on experiences and goods that make them feel good,” said Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Incorporated. “As retailers grapple with excess inventory and supply chain constraints, it is likely that the promotional activity seen in July will continue to be an important strategy for retailers.”

See also:

3 Key Areas Targeted as Consumers Shift Their Spending Priorities | Investigation

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