CNN — NEW YORK (CNN) — Many Americans are telling pollsters that they are dissatisfied with the current state of the U.S. economy. Nevertheless, Americans also say they plan to spend more during the holidays.
Americans now estimate they will spend an average of $975 on Christmas and other holiday gifts this year, up from October’s average spending forecast of $923, according to a Gallup poll released Wednesday.
That’s $100 more than consumers estimated a year ago and the highest level since Gallup began tracking this metric in 1999. Spending intentions are not adjusted for inflation.
It is difficult to reconcile this result with the latest public opinion polls on economic conditions.
A clear majority of Americans (71%) rate the nation’s economic situation as poor, according to a CNN poll released Wednesday. This includes 38% of people who rate their economic situation as very poor.
About 4 in 10 Americans say the economy or the cost of living is the biggest problem facing America, according to a CNN poll. This far exceeds the share of people who cited other issues.
Gallup found that for most holiday seasons, Americans lower their spending expectations from October to November. But that didn’t happen this year.
“This increase may reflect consumer interest in retailer promotions that began in advance of Black Friday,” Lydia Saad, director of U.S. social research at Gallup, said in a report Wednesday. Stated.
Lured by record discounts, Americans significantly increased their online shopping spending on both Black Friday and Cyber Monday, according to Adobe Analytics.
The new holiday spending forecast of $975 suggests holiday sales could increase 6% to 9% this season, according to Gallup modeling. In comparison, retail sales increased by an average of 6.2% from November to December 2022.
Middle-income Americans led the increase in spending intentions compared to last year. Households with incomes between $40,000 and $99,999 plan to spend $209 more than last year’s estimated $709, according to Gallup.
According to Gallup, there was little change in spending intentions among higher-income Americans, while lower-income Americans reduced their spending plans to $429 from the previous $477.
The survey also found that women and young people (under 35) are expected to spend more compared to last year.
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