The Impact of Inflation on Holiday Spending
This is what our respondents said about the impact of inflation on their holiday plans.
Who Will Reduce Spending?
A large majority of respondents will reduce holiday spending. Overall, only 17.5% of respondents did not expect to cut back on holiday spending.
Income had some impact on the decision to reduce holiday spending, but it was less than expected. Almost 87% of those earning under $50,000/year said they would reduce spending. In all other income groups – including those earning over $150,000/year – the figure was close to 80%.
Do you expect to cut back on holiday spending this year?
Respondents over 60 were least likely to say they were reducing spending, although a large majority – 75.65% – will cut back. For those 45-60, the figure was 81.65%, and 85% to 90% of younger respondents will reduce spending.
Do you expect to cut back on holiday spending this year?
Where Will They Cut?
The targets for spending cuts were quite consistent across the groups surveyed. Gifts for family members (48.61%) and for friends (44.35%) were the leading responses, drawing very similar response rates across age and income groups.
Respondents aged 30-60 were most likely to cut back on gifts for children, averaging 30%, while older and younger respondents were closer to 20%, presumably because they are less likely to have children.
Holiday travel was a consistent target at around 40% across groups, while around 30% across groups expected to reduce spending on food and alcohol.
What do you expect to cut back on this upcoming holiday season?
What Gifts are Most Likely to be Cut?
Manufacturers and merchants selling electronics won’t be happy with the results here: 42.8% of respondents planned to cut spending on gifts in the category, followed closely by jewelry and watches at 41.45%.
Other top targets for spending cuts were Memberships (28.21%), Sports Equipment (27.89%), Cosmetics and Perfumes (30.28%), Toys (25.76%, and Gift Cards (24.21%).
Again, these responses showed very similar patterns across age, income, and gender lines, rarely varying by more than a few percentage points.
If you plan on cutting back on gifts this holiday season, which gifts are you most likely to skip buying?
