11:59 AM EST, 12/26/2024 (MT Newswires) -- US retail sales increased more than expected during the holiday season and came in above last year's growth pace, according to preliminary data from a Mastercard ( MA ) report.

Retail sales excluding automotive rose 3.8% year-over-year from Nov. 1 to Dec. 24, with the last five days of the season reflecting 10% of overall spending, the Mastercard SpendingPulse report showed Thursday. That's higher than the 3.2% gain it previously expected and last year's 3.1% growth pace.

SpendingPulse covers in-store and online retail sales across all forms of payment. The report showed spending on apparel rose 3.6% year-on-year, while the restaurant segment added 6.3%. Outlays on jewelry advanced 4%, while electronics increased 3.7%.

"The holiday shopping season revealed a consumer who is willing and able to spend but driven by a search for value as can be seen by concentrated e-commerce spending during the biggest promotional periods," Mastercard Economics Institute Chief Economist Michelle Meyer said.

Online sales moved 6.7% higher on a yearly basis while in-store purchases were up 2.9%, according to the report. Tampa and Phoenix lead cities with double-digit online sales growth, followed by Minneapolis, Dallas and Charlotte.

"Solid spending during this holiday season underscores the strength we observed from the consumer all year, supported by the healthy labor market and household wealth gains," according to Meyer.

Census Bureau data released earlier this month showed that retail sales rose at a faster-than-projected pace in November, driven by spending on motor vehicles and parts.

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