at the checkout, giving the economy a much-needed boost.
The holidays were a bright spot for the struggling US economy. While overall consumer spending remains far lower than before the pandemic, Americans opened their wallets during the holiday season, showing that they are ready to enjoy themselves and splash out even as Covid-19 continues to take its toll on economic activity.
Retail sales surged during the holidays, with the National Retail Federation estimating that holiday season sales increased by 4.1% compared to the same period last year. Spending on online shopping increased even more, with e-commerce sales increasing by 22% during the holidays, according to Adobe Analytics.
The holiday season came as a relief for many retailers who had been struggling with pandemic-related closures. With consumers turning to online shopping as an alternative, online sales surged as businesses adjusted to a changing landscape.
The spending surge also gave the US economy a much-needed boost, with the Commerce Department reporting that retail sales increased in December for the fourth consecutive month. Economists view retail sales as a sign of economic health, and the holiday season spending reflects that Americans are starting to feel more confident in their purchases.
While the US economy still faces many challenges, from high levels of unemployment to weakened business activity, the holiday season appears to have provided a short-term reprieve and an end-of-year boost.
