Americans are planning to spend way more on holiday shopping this year – DIGIWIZ CENTRAL

Americans are planning to spend way more on holiday shopping this year

Americans plan to spend more and make bigger purchases this holiday season.

Joey Hadden/Insider

Americans hope to spend more on holiday shopping this year as retail sales continue to increase.Over one in five Americans are planning to spend over $1,000 on holiday shopping this year.This comes amid concerns about housing savings being depleted.

Even as their household savings cushions decline, Americans are looking to shell out much more money in holiday gifts than last year.

In its Holiday Shopping Survey release Thursday, credit reporting giant TransUnion found that Americans on the whole are planning to make larger, more expensive purchases on holiday gifts.

In a survey of over 1,500 adults conducted in August, TransUnion found 21% of respondents were planning on spending over $1,000 on holiday shopping this year, compared to 14% last year. Meanwhile, while 17% spent under $100 last year on holiday gifts, only 4% plan to spend that little this year.

This growth in holiday spending comes from the 29% of Americans who said they’re planning to spend more this year, in contrast to 16% who said they plan to reduce spending. This shift was driven in part by higher-income millennial households with children, as well middle- and lower-income Americans experiencing strong wage growth, the report noted.

“Amidst the volatility, we see signs of stability when it comes to holiday shopping,” TransUnion wrote in the report. “American consumers have been resilient all year and are feeling bullish about holiday spending.”

TransUnion found that some respondents are looking to practical gifts and experiences over material goods this year. A third of households reported planning to give more practical gifts this year, such as gas cards. Around 21% said they would replace tangible gifts such as clothing or electronics with experiences such as travel and events.

Americans are still being economical, as around a fifth said they were buying cheaper versions of gifts, while 28% said they’re buying fewer gifts this year. Many are also shopping earlier this year — 22% said they already started shopping as of August — as well as searching for deals well before December.

Retail sales are still growing each month, growing 0.7% month over month in September after 0.6% in August. Sales at miscellaneous store retailers grew 3% since the previous month, while online sales rose 1.1%. Sales rose 3.8% year-over-year, slightly outpacing the CPI.

Sales are up despite the restart of student loan payments and elevated borrowing costs. Still, TransUnion found student loan payments are only impacting the shopping behaviors of 22% of total respondents.

Read the original article on Business Insider
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