Americans Adjust Holiday Spending Amid Inflation Concerns

Image: “Holiday Spending Concerns”

As inflation continues to be a significant concern for many Americans, a recent CBS News poll reveals that people are adjusting their holiday spending habits accordingly. The poll found that most Americans are trying to stay within their means during the holiday season, with very few planning to go into debt to purchase gifts. Instead, they are focusing on spending what they feel they can afford.

This cautious approach to spending is evident in the fact that only one in five respondents stated that they would buy more gifts for others this year compared to previous years. This trend is consistent across various income levels, including higher-income earners and those who claim to be comfortable living within their means. In contrast, more than a third of respondents said they would buy fewer gifts. A significant portion of the population will not change their gift-buying habits either way.

In addition to being more mindful of their gift purchases, Americans are also cutting back on other expenses. Nearly half of the respondents reported that they would buy fewer gifts for themselves during the holiday season. They are also reducing spending on airline and travel tickets, entertainment tickets or events, and food and drink items. This trend is particularly noticeable among lower-income Americans and those struggling to make ends meet.

However, the survey also highlights the disparity in spending habits based on financial situations. Those who are struggling financially are more likely to forgo buying gifts altogether. Over 40% of respondents who said they couldn’t afford to make ends meet stated that they would not be purchasing any gifts. This percentage is significantly higher than those who are in a better financial position, can afford to save money, or have some extra funds for discretionary spending.

The CBS News/YouGov survey was conducted with a nationally representative sample of 2,182 U.S. adult residents between December 4th and 7th, 2023. The sample was weighted based on gender, age, race, and education levels to align with the U.S. Census American Community Survey and Current Population Survey. The margin of error for the survey is ±2.8 points.

As the holiday season progresses, it remains to be seen how these spending trends will impact retailers and the overall economy. However, it is clear that Americans are taking a more cautious approach to their holiday spending due to concerns about inflation.

In conclusion, the CBS News poll reveals that Americans are adjusting their holiday spending habits in response to inflation concerns. They are focusing on staying within their means and cutting back on unnecessary expenses. This cautious approach is evident in their reduced gift-buying, as well as their decreased spending on other items such as travel, entertainment, and food. The survey also highlights the disparity in spending habits based on financial situations, with those struggling financially being more likely to forgo buying gifts altogether.