Holiday Spending Estimate Shows Increase Over Last Year

Holiday Spending Estimates Rise Again

Holiday spending estimates are reflecting a renewed willingness among consumers to spend on gifts. According to a Gallup survey conducted from November 6-20, Americans anticipate spending an average of $1,012 this holiday season. This marks a modest rise from last year's forecast of $975, suggesting a gradual recovery in consumer sentiment.

Historical Context and Spending Patterns

While the current estimate shows a rise, it is essential to note that inflation factors in significantly. The $1,012 expected spending this year equates to about $985 after adjusting for a 2.6% inflation rate, translating to a minor real increase. Over the past few years, spending expectations have seen fluctuations, with a notable low of $867 in 2022 and averages steadily climbing from $846 in 2019 to $886 in 2021.

Consumer Sentiment Towards Spending

• 55% of respondents expect to spend the same as last year.
• 23% plan to spend less, down from 27% last year.
• 19% anticipate spending more, maintaining the same percentage as last year.

This year, more consumers seem to affirm their intent to spend, reflecting both confidence and a yearning to celebrate.