Most Americans Expected To Maintain or Boost Holiday Shopping Budgets Compared to Last Year
Households With Children, High-Income Earners, and Millennials Fuel More Spending for Some
Inflation can influence people’s spending during the upcoming winter holidays, especially with the inflation rate of 3.7% for the 12 months that ended in September.
However, according to a recent report from consumer credit reporting company TransUnion, it appears more Americans are inclined to maintain or even increase their spending compared to last year. More than half of those surveyed plan to spend more than $500 this holiday shopping season, an increase from the 36% who intended to do so in 2022.
The online survey, which gathered responses from 1,512 adults, was conducted this past August and included participants aged 18 and older in the United States. It found that about three in 10 consumers plan on spending more on holiday shopping than in the year prior and 56% said they are spending about the same as in 2022, while only 16% say they will spend less.
“Among the people spending more than last year (35%), most indicate they are doing so to buy more gifts or more expensive gifts. Similarly, most of those who say they spent this amount last year aren’t planning to change their gift-giving this year. Only 16% are spending the same to buy fewer gifts, whereas a higher figure here would be clearer evidence of the impact of inflation,” Cecilia Seiden, vice president of TransUnion’s retail business, told CoStar News.
The survey also found that 63% of households with children are inclined to increase their holiday spending, particularly for their children. The likelihood of increased spending is primarily driven by high-income households, those earning $100,000 or more.
For those celebrating the winter holidays, the average expected expenditure on gifts, decorations, food, and other seasonal items is $875, according to the National Retail Federation’s latest consumer survey conducted by Prosper Insights & Analytics. That is an increase of $42 compared to what consumers had said for their 2022 holiday spending.