U.S. consumers showed resilience this holiday season, boosting retail spending by 4.2% year over year, as per Visa data. Shoppers focused on technology and personal goods despite economic challenges. In-store shopping dominated, accounting for 73% of spending, while e-commerce saw a 7.8% increase, driven by convenience and early promotions.

The 2025 holiday season saw a notable shift in consumer behavior, with AI playing a significant role in product comparison and price evaluation. Half of consumers surveyed used AI for shopping tasks. Spending categories favored electronics (up 5.8%), apparel and accessories (up 5.3%), and general merchandise stores (up 3.7%), while home improvement lagged.

Despite economic uncertainties, real spending growth adjusted for inflation is around 2.2%. Visa’s data suggests a disconnect between consumer sentiment and actual spending, with many Americans planning to spend less this holiday season due to high costs of goods and inflation impacts.

Read more at CNBC: Visa says holiday spending rose 4.2% via AI, tech and apparel growth