Americans Plan to Spend Less This Holiday Season Due to Inflation, Survey Finds

Holiday Spending Trends

• 📊 41% of Americans plan to spend less on holiday shopping this year, an increase of six points and the highest since 2022.
• 🛍️ 42% of consumers expect to spend about the same, while 16% plan to spend more.
• 💸 The average American shopper buying gifts anticipates spending approximately $1,200, a 3.9% increase from last year.

Inflation's Impact on Consumer Decisions

• 🚨 High cost of goods is cited as the top reason for spending less by 46% of consumers, a 10-point increase from last year.
• 📈 For those spending more, the high cost of goods is also the leading reason, up 11 points from last year, surpassing being paid more.
• 🛒 Overall, 68% of consumers believe gift prices are higher this year compared to last year, with a third noting they are much higher.

Factors Influencing Price Perceptions

• 🗣️ There is a psychological and partisan dimension to inflation concerns, with Democrats showing more sensitivity than Republicans.
• 📰 Media attention to inflation may also be contributing to consumers' psyche and spending decisions.
• 📉 The affordability issue appears to be a significant driver of the holiday shopping season.

Tariffs and Retailer Margins

• 🧐 The survey touches upon the pass-through of tariffs and potential future price increases for consumers.
• 📊 There is ongoing discussion about whether retailers are passing on costs and the impact on their profit margins.