December sales figures showed spending was strong, but more consumers are using credit cards and buy now, pay later programs to finance purchases.

December saw a 0.4% monthly gain and November was revised up. Less well-off consumers kept up with the aid of credit cards or savings accounts.

End-of-year deals, along with replacement of vehicles lost to hurricanes and anticipation of higher prices in 2025, may be prodding buyers.

The company pointed to a “challenging macroeconomic environment.”

The University of Michigan survey was done before Election Day. Optimism about future economic conditions is at best level in nearly four years.

GDP grew at a healthy 2.8% pace. Current spending levels may provide a welcome “not too hot, not too cold” scenario for the Federal Reserve.

September retail sales excluding vehicles and gasoline were up 0.7%. But consumers report uncertainty about the election and how it will impact the economy.

In its latest report on restaurants, Toast finds a shift toward restaurant spending in the mornings, away from lunch and dinner.

Second quarter gross domestic product growth was 2.8%. That’s double the GDP growth in the first quarter of the year.

At a time of high prices and interest rates, BNPL offerings are tempting. But they could lead vulnerable consumers into a debt spiral.