Higher Prices Result in Reduced Holiday Shopping for 55% of Americans
Inflation has cast a shadow over the holiday season as a majority of Americans are cutting back on their holiday spending due to high prices, according to a recent Monmouth University Poll. The poll, released on Thursday, revealed that 55% of respondents are reducing their holiday shopping list this year, up from 46% in the previous year and 40% in 2021.
Spending Cuts Reported Across All Demographic Groups
The trend of spending cuts was observed across all demographic groups, with individuals earning less than $50,000 annually being the most affected. Of the respondents in this income bracket, 67% stated that they have reduced their holiday spending this year, compared to 48% in 2022.
Reasons Behind the Cutbacks
Patrick Murray, director of the independent Monmouth University Polling Institute, commented on the findings, stating, “The rate of inflation may be slowing, but the damage has been done after a long stretch of rising prices.” He further added, “There could be a number of reasons why more are cutting back this season. Perhaps those who kept to their usual spending habits as we came out of the pandemic are seeing it catch up with them now. Or maybe their budgets are the same, but they are exchanging fewer gifts or buying for fewer people. Whatever the reason, there is greater pessimism on the holiday gift-giving front.”
Holiday Traditions Adapted to Save Money
Empower’s 2023 holiday spending report, which surveyed over 1,000 Americans, found that 74% of respondents stated that inflation is influencing their holiday spending this year. Additionally, 31% stated that they are working extra hours or taking on a side gig to afford their purchases. The report also revealed that over 30% of surveyed individuals are cutting back on holiday traditions to save money, and more than half are opting out of travel to reduce costs.
Maintaining Holiday Spirit Despite Spending Cutbacks
Although Americans are reducing their spending on gifts, it does not mean they are spreading less holiday cheer. The survey found that a significant majority of respondents are still engaging in traditional holiday activities. This includes playing Christmas music (76%), decorating their homes (75%), and making Christmas candy, cookies, or desserts (69%). Furthermore, over 40% of Americans expressed their intention to volunteer for charitable activities during the holiday season.
Record Low for Caroling
One holiday tradition that is experiencing a decline is caroling, with only 9% of respondents indicating plans to go caroling this year, marking a new record low.
Source: Fox Business