Thanksgiving and Christmas are around the corner and Americans may be in a spending mood. The trade war with China and plunging consumer confidence are unlikely to stop people from splurging this holiday season.
The average American will spend nearly $1,050 on holiday gifts, goodies, and travel this year, the National Retail Federation estimates. This is up slightly from last year’s estimate of about $1,000. Retail sales are expected to increase by up to 5%, while online shopping is projected to grow between 14% and 18%, according to Deloitte, a consultancy firm.
For the most part, people with lower personal income will spend less this holiday, but there are a few notable exceptions. In a few states Americans whose average income is between $40,000 and $45,000, lower than the national average of $48,000, are willing to spend as much as people making between $55,000 and $64,000.
24/7 Tempo reviewed spending estimates based on a survey of the average consumer holiday spending by the National Retail Federation and Prosper Insights & Analytics.
With the exception of Hawaii, states in the North and Northeast are projected to spend the most during the holidays. For example, people living in the Northeast are expected to spend, on average, about $1,300 per person this year. This is much greater than the average estimated expenditure on holiday items in the South of about $950.
Holiday spending can be separated into three major categories. The biggest one is money spent on gifts for relatives, friends, and colleagues. For gift spending, the average American is willing to allocate about $660 from the holiday budget. The next largest spending category is greeting cards and decorations, with the average spending of about $230, while the third category is non-gift self-spending. A big chunk of the holiday budget goes for food, but it doesn’t have to — if people know what foods to avoid. These are the most expensive holiday foods.