I live alone and am sometimes finding items like bath towels, which are only 2 months old, with visible cuts (not all the way through) in the fibers and also damage to CD artwork booklets such as creases (as if the booklet has been folded). My question is, is it possible for a ghost/spirit to cause physical damage to anything? Also I have a security camera which regularly detects motion, but never records any visible movement.

There has never been any recorded proof. Try recording video with motion detector

I live alone. Many a day is a test of my sanity, regarding items moved, missing (stolen, I always think), broken, changed, or 'exchanged' for one that looks like it.
It is VERY easy for the sanest person to go a little crazy when living alone.
I read a book by someone who sailed across the Atlantic alone in a small boat, and he started hallucinating about a week from land. He knew to expect it, and got through it.

I don't believe in ghosts and spirits and demons or any supernatural entities.
I sit down and think each incident through!

Spending half my day on Facebook interacting with people I KNOW helps a lot.
Sites like this too - you can make friends here too.