Peak U.S. holiday shopping season is almost upon us.
The period from late November through December is when shoppers spend a lot of money for various holidays.
77% of people surveyed said they expect higher prices on holiday items, according to Deloitte.
Consumers also said they plan on spending 10% less than the $1,778 they planned to spend in 2024, according to Deloitte.
Economists believe the data in recent reports are because of the current consumer sentiment.
“It’s based on a number of factors, including how well the economy is doing and unfortunately, right now, consumer sentiment is down considerably. People are worried about the economy. They’re worried about inflation, they’re worried about prices going up, and they’re worried about the weakness in terms of the jobs market,” said University of San Diego, Economics Professor, Alan Gin Ph.D.
Some San Diego business owners said they are seeing consumer spending on-par with previous years despite economic concerns.
“We’ve definitely have already started to see people coming in, preparing for Christmas shopping so kind of scoping out what’s out there,” said Elexia De La Parra, Owner, Artelexia.
Despite economic concerns consumer spending during November and December is expected to surpass $1 trillion for the first time, according to the National Retail Federation.
“I think people are going to be more careful this time around. When people are stressed economically, they are a little bit more careful with their money and so I think they’re going to be a little bit more discerning than in terms of the things that they buy and the people they shop for,” Gin said.
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