Holiday Spending: Tech and Clothes Lead the Way

This holiday season, people in the U. S. kept spending money, even though the economy wasn't doing great. They spent 4. 2% more than last year, especially on tech gadgets and clothes. Most of this spending happened in physical stores, but online shopping grew the fastest, with a 7. 8% increase. This shows that people still want things to be easy and are looking for good deals early on. The way people shopped changed a lot this year. Many used artificial intelligence (AI) to compare prices and find the perfect gifts. About half of the shoppers used AI for these tasks, which is a big deal because it's the first time AI has played such a big role in holiday shopping. People also spent more on personal items like electronics and clothes, while spending less on home improvement projects.Electronics were the most popular items this season, with sales going up by 5. 8%. This is likely because people are buying new gadgets that work well with AI. Clothes and accessories also did well, with a 5. 3% increase in sales. On the other hand, spending on home improvement stuff like building materials and garden equipment went down by 1%, and furniture sales only went up by a tiny 0. 8%. Even though the total spending numbers look good, the real growth is probably smaller when you factor in inflation. When you adjust for inflation, spending is still up by about 2. 2%. This means people are being careful with their money but are still finding ways to enjoy the holidays. Interestingly, even though many people said they planned to spend less this year, they actually spent more. This shows a big difference between what people say they'll do and what they actually do. The high cost of goods is making people think carefully about where they spend their money.