Significant Increase in Holiday Spending Plans Among Americans
According to the CNBC National Economic Survey released on Sunday, over a third of Americans intend to spend at least $1,000 on holiday shopping this year. This marks a notable rise from previous years and represents the highest percentage in around 15 years. It appears to reflect a broader sense of prosperity among households across the U.S.
The survey, which took place between December 4-8 and included 1,000 adults nationwide, revealed that 36% of respondents plan to allocate $1,000 or more for holiday gifts. In contrast, this figure was 29% the year prior and 32% in 2022. This is quite different from the early 2010s, when just about one in four Americans anticipated spending at this level.
On average, Americans are looking to spend about $1,016 on holiday shopping, which is nearly identical to last year’s average of $1,014. For those who plan to spend something on gifts, the average amount is expected to rise from $1,154 to $1,199 in 2024.
Holiday spending patterns appear stable in the lower to middle ranges. Approximately 22% of individuals plan to spend under $200, which aligns with historical trends. Meanwhile, 20% aim to spend between $200 and $499, and 19% plan to spend between $500 and $999. This increase suggests that more Americans feel financially secure enough to spend generously on holiday gifts this year.
The surge in spending among wealthier individuals coincides with the fact that 60% of Americans are reportedly investing in the stock market, including retirement accounts, which is near the survey’s peak. This trend indicates that the positive effects of strong stock market performance may be enabling a wider range of household spending than seen in past decades.
Interestingly, the spending intentions starkly contrast with how Americans perceive the economy overall. About 76% describe their financial situation as “fair” or “poor,” and 61% believe their family’s income falls below living costs. Still, only 41% say they will reduce their holiday spending this year, while 42% plan to maintain their expenditure. Furthermore, 16% expect to increase their spending, which is slightly above the historical average.
Moreover, the survey revealed a strong level of confidence regarding holiday budgets, with only 4% expressing uncertainty about their planned spending—one of the lowest rates of uncertainty recorded in survey history. This suggests consumers are feeling more secure in their financial plans this year compared to earlier periods.
When looking at spending plans across political party lines, there was minimal variation. Among registered voters, 37% of Democrats and 39% of Republicans aim to spend over $1,000, which falls within the survey’s margin of error.
