High cost of goods is causing consumers to spend less for the holidays, CNBC survey finds
The latest CNBC All-America Economic Survey found the high cost of goods has emerged as a major factor affecting how much shoppers spend and where they spend.
TL;DR
- High cost of goods is the top reason Americans are spending less and, in a first for the survey, the main reason they are spending more.
- Almost 70% say prices are higher now, affecting both those spending more and less.
- 61% believe prices are rising faster than their incomes.
- 41% of Americans plan to spend less this year, an increase from a year ago.
- Average planned holiday gift spending is $1,016, but $1,199 for those buying gifts.
- 60% of the public is pessimistic about the current state and outlook of the economy.
- Pessimism about the economy is widespread across Democrats, independents, and increasingly, Republicans.
- Shopping habits are shifting, with a 9-point increase in Americans saying online retailers, a 3-point gain in big-box stores, and a 6-point gain in wholesale retail outlets.
- 28% of the public only buys discounted items, while half look for discounts but will purchase anyway.
- 57% of Americans have at least some debt going into the holiday shopping season, up 11 points from last year.