Holiday Shopping Challenges in a Tough Economy
Many Americans are feeling a bit down about the economy this holiday season. They’re digging into their savings to buy gifts, all while scrambling for sales, according to a recent poll by the Associated Press-NORC Center for Public Affairs Research.
Approximately half of those surveyed said that affording gifts this year is tougher than usual. Around 50% also indicated they’re reducing unnecessary spending and putting off larger purchases.
This sentiment aligns with broader economic challenges. A staggering 89% of respondents noted increases in food prices, and about 70% reported similar hikes in their electricity bills. During the holidays, over 60% acknowledged that prices had also risen.
Interestingly, 68% of U.S. adults classify the economy as “poor,” a figure consistent with the same time last year, just before the return of President Donald Trump.
Trump has recently commented on inflation, attributing current economic struggles to former President Joe Biden’s policies. “Americans are still feeling the pinch from Biden’s economic crisis,” remarked White House Press Secretary Khush Desai.
Desai continued to assert that the Trump administration’s policies aim to reverse the economic downturn, much of which, they claim, stems from previous decisions made under Biden.
Interestingly, these findings echo consumer sentiment from last December when inflation was at its peak. Although inflation has eased somewhat, shoppers don’t feel relief at the register. In reaction, about half of the Americans surveyed say they’re hunting for the best deals more diligently this year, while around 40% admit to using their savings to manage expenses.
When it comes to political affiliations, Democrats are more likely to report cutting back or seeking bargains. However, many Republicans are also feeling the financial strain, with about 40% indicating they are looking for deals more than in the past.
Private consumption remains somewhat steady. Some shoppers report adjusting their spending habits, opting for fewer imported goods or avoiding discretionary items altogether.
Looking forward, the mood doesn’t appear to brighten much. Nearly 40% of adults think economic conditions will worsen over the next year, and roughly 30% expect the situation to stay the same. Only about 20% foresee an improvement, with Republicans exhibiting more optimism than Democrats.
This shift in sentiment marks a decline from 2024 when many believed the upcoming year would bring better economic prospects. The poll’s results highlight the political hurdles President Trump faces as midterm elections approach, especially since concerns about inflation and affordability remain significant issues.
Recently, Trump has signaled plans to visit various locations to showcase his economic policies and reassure voters amid these daunting perceptions.
The AP-NORC poll was conducted between December 4 and December 8, involving 1,146 U.S. adults, with a margin of error of plus or minus 4 percentage points.
