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Visa sees US holiday retail sales growing 4.5%, fastest pace since 2021

By Thomson Reuters Nov 5, 2026 | 6:56 AM

Nov 5 (Reuters) – US holiday retail sales are set to rise 4.5% year-on-year in the last two months of 2026, ​marking the strongest growth since 2021, ‌according to research by Visa’s Business and Economics Insights.

Here are more details:

• The research said the forecast pointed to continued consumer resilience supported by solid ‌income ​growth and household wealth even ⁠though high inflation ⁠is set to play a part in where “holiday dollars go”

• “Income growth continues to provide an important foundation for spending and while ​higher prices remain part of the picture, we expect another healthy holiday season,” said ⁠Michael Brown, principal US ⁠economist at Visa

• Visa and Mastercard ​both beat earnings estimates for the quarter ended ​September 30, underscoring the fact that spending ‌has remained resilient

• Consumers are set to spend an average of $777 on holiday gifts this year, up 5.6% from $736 in 2025, ⁠the research showed, even though customers are still adapting to high prices

• Despite over half of the ⁠surveyed consumers ‌wishing for travel and events, ⁠holiday budgets favor traditional spending. Only ​15% ‌will prioritize buying experiences, while 27% ​plan to ⁠purchase physical gifts instead, according to the research

• Only households earning over $200,000 increased holiday airfare spending, while lower-income groups pulled back their bookings

(Reporting by Pritam Biswas in Bengaluru; Editing by ​Shreya Biswas)