With holidays around the corner, Americans are set to go shopping — but inflation and rising prices have taken a toll.
According to recent data, consumers in the U.S. have shared their spending plans, charitable contributions and holiday events during this holiday season.
An estimation by the University of Michigan shows that household sentiment in the last six months is comparable to late 2008 and early 2009, when the country saw an economic disaster and higher unemployment. In addition, during that time, inflation climbed to double digits.
A Census Bureau survey of households has found that 41% of Americans said they had difficulty paying for essential household expenses compared with 29% a year earlier.
According to Deloitte’s 37th annual holiday shopping survey, Americans plan to buy an average of nine gifts this year compared with 16 last year. In addition, they have said that they plan to spend less time shopping than they did last year.
Earlier in September, a Bankrate.com survey revealed that 45% of people who earn under $50,000 in annual household income said inflation is changing their shopping habits, while 41% of shoppers who earn between $50,000 and $79,999 agreed with the sentiment.
“Holiday shopping will look different this year with inflation around 40-year highs,” said Ted Rossman, Bankrate.com’s senior industry analyst.
A RedFlagDeals.com study reveals that 43% of consumers plan to spend less on holiday shopping as of November, compared to their plans in September, and three out of five consumers plan to spend less on holiday shopping in 2022 than in 2021.
Consumer budgets for the holiday season are decreasing, with 75% planning to spend $1,000 or less this holiday season, the report said.
The number of people looking to spend $500 has increased by 24% since September as people tighten their wallets.
The National Retail Federation has mentioned that holiday sales growth will slow to 6% to 8% from the 13.5% growth of a year ago.
Another report carried out by BlackFriday.com found that 70% of consumers will consider inflation when shopping this holiday season.
Photo via Shutterstock.
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