Dec. 23 (UPI) — U.S. consumers showed steady confidence this holiday season, with retail spending up 4.2% from last year, according to preliminary data via Visa released Tuesday.
Despite ongoing economic challenges, shoppers continued to buy especially tech and personal items. The analysis — based on Visa payments data from Nov. 1 over a seven‑week period — excluded auto, gas and restaurant categories and wasn’t adjusted for inflation.
Michael Brown, principal U.S. economist at Visa, said the “underlying surprise” was that U.S. consumer spending “is holding up reasonably well in light of softer consumer confidence than we had this time last year and a number of headwinds and concerns about inflation.”
In-store purchases made up 73% of total spending, though online sales rose by 7.8% and were the main source of growth fueled by convenience and early holiday deals.
Brown said the 2025 holiday season signaled a clear change in shopping habits, driven in part by artificial intelligence reshaping how consumers discover products and compare prices.
“We are seeing consumers use AI in a big way in comparison shopping and then helping to narrow down that perfect gift,” Brown told CNBC.
Electronics saw the strongest gains, with sales up 5.8%, driven by demand for newer, high-powered devices linked to the AI boom.
Apparel and other accessories rose 5.3% and general merchandise retailers offering one-stop shopping recorded a 3.7% increase.
But home-focused categories lagged. Spending on building materials and garden supplies slipped 1% and furniture and home furnishings were nearly flat edging up just 0.8%.
Although overall retail growth appears solid, the figures are not adjusted for inflation, meaning actual inflation‑adjusted gains were likely smaller once Consumer Price Index data was fully factored in.
Meanwhile, a recent survey found that 41% of Americans intended to cut back on holiday spending this year, which was up six points from 2024.
“This is the first holiday shopping season where roughly half of the consumers in that survey responded that they are going to leverage AI for one of those two tasks,” Brown added.
New Yorkers gather for near Times Square at SantaCon NYC on Saturday as part of the annual worldwide event where thousands dress as Santa or other festive characters for a day of drinking, parading through city streets and celebrating the holidays. Photo by John Angelillo/UPI | License Photo
MUSIC star Lily Allen has made a shock confession that she’s now in therapy for her addiction to spending.
The 40-year-old admitted that she can’t stop shopping after purchasing designer handbags and an £120,000 Porsche.
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Lily Allen has made a shock confession that she’s now in therapy for her addiction to spendingShe admitted that she can’t stop shopping after purchasing designer handbags and an £120,000 PorscheLily opened up on her podcast Miss Me ? alongside co-host Miquita Oliver for a Christmas special episode
Following the success of her latest album, West End Girl, the singer has revealed that she has put herself into therapy over the last four months to cope with her spending habits.
Speaking on her podcast Miss Me? alongside co-host Miquita Oliver for a Christmas special episode, Lily opened up about EMDR therapy.
She said: “I actually did EMDR therapy yesterday on my spending and how it’s related to my sense of self-worth and we tried to separate the two. So let’s see how that goes.”
Lily admitted: “I think I try and get rid of it (money) because I don’t think I deserve it.”
Lily replied: “EMDR therapy is a special type of therapy. There’s like, what do you call it? Like stimuli that stimulate the left side and the right side of your brain and basically try and create new pathways in relation to certain behaviours or traumatic experiences or traumatic interactions with certain human beings or anything really.
“I started doing EMDR about four months ago, five months ago and it’s like been life changing. I just absolutely love it.
“I am not a doctor and I am not qualified to give that kind of advice but this is what is working for me currently,” she added.
Speaking about how the therapy works for her own addiction, Lily continued: “You usually start by sort of deciding on which area you’re gonna focus on during that session and then you visualise the experience.
“If you’re trying to change your attitude towards a traumatic event, you try and think about how painful that event is from one to 10 and then you activate the stimuli, which in my case is these two vibrating balls that I put in each hand and you sort of close your eyes and put yourself in that situation and then try and identify what the feelings are that are coming up actually in your body, and in your mind.
“And then you do that sort of five or six times and you find that the pain level associated with it goes down and down and down.
“If you’re trying to get rid of a negative behaviour like spending or drug taking or drinking or addiction to sex or whatever it is, you do the opposite.
“In my case a handbag, you try and separate yourself from thinking this handbag is going to make me a better person. Its really interesting type of therapy and I’m not clear on the science of how it works but its working for me so I’m very happy about it.”
Earlier in the episode Lily revealed she had bought herself “a little present”.
She said: “I’m just playing with my huge diamond and emerald ring, I bought myself a little present but it’s not that little.”
And earlier this week the star was snapped getting out of her new £120,000 porsche and £16,500 Hermes handbag in London.
Lily’s shopping revelation comes during a significant year for the star, who has launched new music widely described as a “revenge” album following her split from husband David Harbour.
The record, West End Girl, draws on heartbreak and betrayal after Lily publicly accused the actor of cheating.
Fans have praised the record for its raw honesty and cutting lyrics.
Singer Lily split from Stranger Things actor David, 50, in December 2024 and it was later reported that he’d had a three-year affair.
The details of her open marriage and split were laid bare on her 14-track West End Girl album.
She came forward recently with a statement to categorically deny having a three-year affair with the actor.
Lily’s shopping revelation comes during a significant year after launching new music widely described as a “revenge” albumCredit: UnknownSinger Lily split from Stranger Things actor David Harbour in December and it was later reported that he’d had a three-year affairCredit: GettyThe details of her open marriage and split were laid bare on her 14-track West End Girl albumCredit: Getty
Jeff Brazier has admitted that he’s “spending time reflecting on life” after his split from his wife and ongoing family feudCredit: InstagramJeff took to Instagram and posted a beautiful snap of him gazing at the sunsetJeff recently released an emotional statement on his split from his wife, KateCredit: Instagram
Jeff took to Instagram and posted a series of beautiful snaps, with one showing the star standing alone on a sandy beach staring out at a gorgeous sunset
He captioned the snap: “Just had the perfect week in St Kitts thanks to @stkittstourism.
“Celebrating the sunshine and time to reflect on life & work while spending time with the team filming for one of our big @itvwin January competitions.
“Thank you to @mickarchy @roscoyule PB & Anita for being such great company and doing a really top class job.
He then posted some recommendations based on his stay before he said: “Don’t forget to check out the Atlantic and Carribean views from Timothy Hill Overlook.”
But reports reveal that he has “landed a new fly-on-the-wall reality show” with his sons Bobby and Freddy that allow the Brazier family to set the record straight on a number of things.
Jeff said that the couple will continue to support each other after their splitCredit: instagramJeff and his two sons are set to appear in a new reality showCredit: jeffbrazier/instagramKate and Jeff Brazier split in the summer but decided to keep it private for a whileCredit: InstagramKate recently posted a tribute to Jeff on Instagram for Father’s Day stating he was a wonderful DadCredit: Instagram/katebrazierpr