Americans Plan to Spend Less on Holiday Gifts Amid Rising Costs, Survey Finds | Global News Avenue

A new survey shows consumers are still spending this holiday season, but perhaps not as much as in the past.

The average American expects to spend $550 on gifts this year, according to the BMO Real Financial Progress Index. Surveys show that 72% of Americans say they will give fewer gifts this year.

Price pressures persist for another year and the outlook is bleak. Inflation is above the Fed’s 2% target. Their fight against inflation has come a long way, but Recently accelerated Some shoppers are worried. The survey shows that 57% of Americans are worried about the rising cost of living.

“As Americans go through a cost-of-living battle, it’s two steps forward, one step back. Urgent need to increase disposable personal income “Despite anxiety about the cost of living, many people are still willing to pay for some holiday cheer,” said Scott Anderson, chief U.S. economist at BMO. Overall holiday spending increased. ”

One in four Americans prepares to slow down spending in 2025

This survey is continuing among consumers show desire to consume. U.S. retail sales came in better than expected in November on strong auto sales. However, some economists see potential weakness in the retail sales report and predict that spending may slow in 2025.

More than a quarter of respondents agreed, with 28% saying they plan to slow spending in 2025.

“With signs growing that consumers are spending less and interest rates on big-ticket items remain high,” Nationwide senior economist Ben Ayers wrote of the recent retail sales report. Growth is likely to slow in the first half of 2025.”