Survey: U.S. shoppers are ready to splash holiday cash
According to The Conference Board's Holiday Spending Survey, the average U.S. consumer intends to spend $1,063 on holiday-related purchases in 2024. That's up 7.9 percent from $985 in 2023 and also higher than in 2022 ($1,006) and 2021 ($1,022).
On gifts, consumers plan to spend an average of $677, which is up 3.4 percent from $654 last year. These buoyant consumer attitudes could spell good news for retailers in need of a big holiday season, though inflation remains a concern.
“As reflected in October’s strong rebound in the Consumer Confidence Index, U.S. consumers are cheerful heading into the holiday season,” said Dana M. Peterson, chief economist at The Conference Board. “The Holiday Spending Survey shows Americans are relatively upbeat about gift-giving and celebrating this year. However, several years of high inflation have raised price levels, reducing purchasing power. Once accounting for inflation, planned holiday spending remains below pre-pandemic levels. Indeed, most consumers expect gifts and food prices to be higher this year than last year. Perhaps as a result, the majority will continue to celebrate the holidays at home or near home this year, with only 31 percent of consumers planning to travel.”
Peterson added: “Most consumers (52 percent) are planning to spend the same amount on gifts in 2024 as in 2023. Only 23 percent of consumers are planning to spend more than last year, and 25 percent are planning to spend less. While younger and wealthier consumers are eager to spend more this holiday season, older consumers (over 65) and those earning under $75K expect to reduce both gift and non-gift expenses compared to last year.”
The survey found that buying gifts online has become ubiquitous, with only 8 percent of consumers planning to do all their shopping in stores. However, the share of consumers planning to do most of their 2024 gift-shopping online declined slightly compared to 2023.
Consumer age also appears to be a spending factor. The Conference Board finds that younger consumers plan to spend more on gifts this year, while older consumers are cutting back. It writes:
- As in previous years, consumers under 45 are planning to spend the most on gifts.
- Compared to last year, consumers under 55 expect to spend more on gifts this year while consumers over 55 plan to spend less.
- All age groups plan to spend more on non-gift items in 2024 compared to last year, with the largest increase for those aged 55 to 64.
Also, consumers report that they expect to do a bit less shopping for gifts online:
- Forty-three percent of consumers expect to purchase at least half of their gifts online in 2024, less than in 2023 and close to the pre-pandemic level.
- Only 8 percent expect to buy none of their gifts online, matching last year’s share, and less than half the pre-pandemic level of 17 percent in 2019.
View The Conference Board's full report here.
