Sales rose this year during the holiday shopping season even as Americans wrestled with elevated prices for many groceries and other necessities, according to new data.

Holiday sales from the beginning of November through Christmas Eve climbed 3.8%, outpacing the 3.1% increase from a year earlier, according to Mastercard SpendingPulse, which tracks all kinds of payments including cash and debit cards. The last five days of the season accounted for 10% of the spending.

This year, retailers were even more under the gun to get shoppers in to buy early and in bulk since there were five fewer days between Thanksgiving and Christmas.

Sales growth was higher than the 3.2% increase Mastercard SpendingPulse had projected this fall. The data released Thursday excludes the automotive industry and is not adjusted for inflation.

Clothing sales rose 3.6%, with most of the growth being fueled by online shopping. Spending on restaurants, and sales of electronics and jewelry also grew. Online sales jumped 6.7% from a year ago and in-person spending rose 2.9%.

Retailers felt more pressure this year due to the shorter holiday shopping period, and also from a presidential election that captured the attention of many consumers. Sales of general merchandise slid 9% in the two weeks ended Nov. 9, according to Circana, a market research group. Sales have been rebounding but stores will have to make up for those losses.

A broader picture of how Americans are spending their money arrives next month when the National Retail Federation, the nation’s largest retail trade group, releases its combined two-month statistics based on November-December sales figures from the Commerce Department.

The group expects that shoppers will have made $979.5 billion to $989 billion worth of purchases in November and December, which would represent a 2.5%-3.5% increase over the same two-month period a year ago. That would be a slower rate than the 3.9% increase from holiday 2023 over holiday 2022 season.

Overall, retailers had a decent start to the unofficial kickoff to the holiday shopping period despite lots of discounts that started as early as October.

— Associated Press

Jobless aid applications steady last week

The number of Americans applying for unemployment benefits held steady last week, though continuing claims rose to the highest level in three years.

Jobless claim applications ticked down by 1,000 to 219,000 for the week of Dec. 21, the Labor Department reported Thursday. That’s fewer than the 223,000 analysts forecast.

Continuing claims, the total number of Americans collecting jobless benefits, climbed by 46,000 to 1.91 million for the week of Dec. 14. That’s more than analysts projected and the most since the week of Nov. 13, 2021 when the labor market was still recovering from the COVID-19 jobs wipeout in the spring of 2020.

The four-week average of weekly claims, which quiets some of the week-to-week volatility, inched up by 1,000 to 226,500.

Weekly applications for jobless benefits are considered representative of U.S. layoffs.

Average mortgage rates rise for second week

The average rate on a 30-year mortgage in the U.S. rose for the second week in a row to its highest level since mid-July, reflecting a recent jump in the bond yields that lenders use as a guide to price home loans.

The rate rose to 6.85% from 6.72% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the rate on a 30-year mortgage averaged 6.61%.

The average rate on a 30-year mortgage is now the highest it’s been since the week of July 11, when it was at 6.89%. It dipped as low as 6.08% in September — a 2-year low — and as high as 7.22% in May,

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan at a lower rate, also rose this week. The average rate increased to 6% from 5.92% last week. A year ago, it averaged 5.93%, Freddie Mac said.

— From news services