Inflation is rising and the economy is in recession! How is the spending power of Americans this peak season?

It is learned that according to a survey by the Conference Board, Americans are more cautious about holiday spending amid continued high inflation and economic uncertainty.

The survey shows that on average, each American consumer intends to spend $613 on gifts this year, down from $648 last year. Consumers will spend more on non-gift items (including food, decorations and wrapping paper), at $393, up from $374 last year.

Currently, American consumers' spending on gift cards has increased the most, followed by toys and games, vacations and travel, while their spending on home decor, furniture, appliances, jewelry and accessories, and tools and hardware has declined.

The survey also showed that consumer purchasing behavior has returned to pre-pandemic levels. 39% of consumers plan to buy at least half of their gifts online in 2022, down from 52% in 2020. 30% of consumers plan to travel away from home this holiday season, roughly the same as last year.

It can be seen that due to the uncertainty of the economic outlook, rising prices (especially food and gasoline), and the easing of the epidemic, consumer spending is shifting from durable consumer goods to services.

The Conference Board also noted that U.S. consumer confidence deteriorated in October, falling to 102.5 from a revised 107.8 in September, the first decline in three months, as the recession and inflation continued to plague consumers.

"Consumers appear to be rebalancing their budgets and priorities, reducing their gifting spending to help offset the higher costs of non-gift spending, particularly food," said Lynn Franco, senior director at the Conference Board. "Given this challenging situation, retailers need to offer discounts, sales and incentives to shoppers earlier than usual."

Editor ✎ Nicole/

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