WASHINGTON, D.C. — American holiday spending predictions hold steady at $923, mirroring last year’s estimates.
Gallup’s recent survey indicates Americans expect to spend an average of $923 on holiday gifts, a slight decrease from last year’s prediction of $932. This forecast, collected from an October 2-23 poll, resembles pre-pandemic levels after a dip during 2020 and 2021.
The consistency in holiday spending intentions suggests moderate rather than robust retail sales growth, historically between 3% to 5%. This anticipated trend follows the norm despite higher spending predictions in Gallup’s October polls since 2006.
Holiday expenditures remain vital to the economy, with around 90% of adults planning to participate in gift-giving. A majority are prepared to spend over $500, including 35% who anticipate spending more than $1,000.
The survey context includes moderate inflation, interest rate hikes, reduced savings, alongside low unemployment and rising wages. Data was collected prior to a Commerce Department report revealing a 4.9% GDP growth in the third quarter.
Consumers’ spending intentions compared to last year are largely unchanged, with 58% planning to spend the same amount, 23% less, and 18% more. The narrow five-percentage-point gap between those spending less and more suggests a stable holiday expenditure.
In summary, while not indicative of a spending surge, Americans’ consistent gift-buying intentions suggest a respectable holiday sales increase, with Gallup’s models predicting growth between 3.7% and 4.5%.
