Deloitte: U.S. back-to-school spending to fall for the first time in nine years!

Back-to-school spending is expected to fall for the first time in nine years as inflation is weighing on consumers’ discretionary spending (i.e. consumers are buying less non-essential items and prioritizing necessities), according to a report released Wednesday by Deloitte.

The report said the average family will spend 10% less per child this summer than in 2022, to $597, while the entire back-to-school market is expected to shrink from $34.4 billion (2022) to $31.2 billion.

"Although U.S. parents were willing to spend more on back-to-school items after the pandemic ended last year, 18 months of inflation have changed their minds," Deloitte said, citing its survey of more than 1,200 parents of school-age children.

The report shows that as Americans spend money on the most basic necessities, clothing and electronics are taking a back seat, with spending on these two categories expected to fall by 14% and 13%, respectively. However, spending on school supplies will surge 20% year-on-year.

A survey from Deloitte found that nearly a third of the households surveyed were in a worse financial situation than last year, and 51% believed that the economy would continue to weaken for the rest of 2023.

"This year's back-to-school season is all about saving. Consumers are looking to save money by shopping early, looking for deals, and prioritizing essential school supplies... They're looking for those bargains," said Stephen Rogers, executive director of Deloitte's Consumer Industry Center.

Notably, the survey also found that nearly 60% of back-to-school purchases will be completed by the end of July, compared with 53% in the same period last year. Of the shoppers who plan to make early purchases, 69% also intend to look for deals during Amazon's Prime Day promotion.

Editor ✎ Nicole/

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