This holiday season, Americans are feeling the lingering presence of inflation, like the specter of Christmases past. The CNBC All-America Economic Survey has unveiled that consumer sentiment is being impacted by inflation, leading to what may just be an average season for retailers. Let’s delve into the insights uncovered by the survey and explore how Americans are navigating this holiday season amidst economic challenges.
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Spending Trends
- Only 16% of respondents are planning to spend more this holiday season, a slight decrease from the previous year.
- Forty-eight percent are aiming to spend the same amount, a modest increase from last year.
- On the other hand, 35% intend to spend less, showing the impact of inflation on consumer decisions.
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Survey Insights
- The survey, conducted by Hart Research in collaboration with Public Opinion Strategies, involved 1,002 participants nationwide from December 5th to 8th.
- Over 64% of Americans believe that prices are higher this year compared to the previous year for holiday gifts.
- The average expected spending per person is noted at $1,014, aligning with recent years but slightly lower than the outlier of $1,308 in 2023.
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Factors Influencing Spending
- Older individuals, lower-income Americans, and women aged 18 to 49 are more likely to spend less due to inflation.
- Among those spending more are the younger demographic, urban residents, and Latinos, with increased incomes being a contributing factor.
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Late Shopping Trends
- With Thanksgiving falling on the latest possible date this year, shoppers are facing a shorter holiday season.
- A significant portion of Americans had not completed even half of their holiday shopping at the time of the poll.
- Women over 50 seem to be among the most organized shoppers, while men are more likely to procrastinate.
- Shift to Online Shopping
- Online-only sites like Amazon are the top choice for 61% of shoppers, highlighting the trend towards e-commerce.
- Social media is also influencing consumer behavior, with one in five respondents making purchases after seeing products on social platforms.
Despite the Consumer Price Index suggesting a moderate increase in prices, Americans are sensitized to the impact of inflation on their holiday spending decisions. As we navigate this season, it is essential for both consumers and retailers to adapt to the economic challenges at hand. Stay informed, plan wisely, and remember that the spirit of the holidays transcends material gifts. Let’s make this season one of gratitude, joy, and resilience in the face of economic uncertainties.
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