Americans Rebuff Omicron as Activity Picked Up in Christmas Week

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Americans didn’t let omicron stop them from going out for some last-minute holiday shopping and entertainment. 

Activity at businesses including restaurants and retail stores increased as much as 4.8% in the week leading up to Christmas compared with the beginning of the month, according to figures from SafeGraph, which tracks mobile-phone geolocation data. Foot traffic peaked mid-week before declining on Dec. 24 as some shops closed for the holidays. 

The figures add to recent signs that U.S. consumers have been eager to got out in spite of the emergence of the highly contagious omicron variant about a month ago.

While Covid-19 cases are up 60% from last week in the country and hospitals are seeing more patients, omicron seems to have milder symptoms than the delta variant and the CDC shortened the isolation period to five days. 

Shoppers flocked to discount retailers in December, with visits increasing above the pre-pandemic period, separate data showed. Consumer sentiment also ticked up in the month from a decade low in November, even as inflation is restraining the outlook. 

Economists broadly expect consumer spending to hold up well into 2022 as savings are unleashed and the tight labor market provides support. Jobs demand in particular is elevated: Filings for unemployment benefits fell unexpectedly last week despite the rise in Covid-19 cases. 

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