Americans To Spend Nearly $800 Each This Holiday
This holiday shopping season is likely to be a good one for retailers according to a recent Gallup study. This is good news for bike retailers who are looking to finish their year on a high note. We've included a basic summary of the findings in this post and you can learn more by visiting the Gallup site to read the full report.
According to Gallup, Americans' initial estimates of the total amount they will spend on Christmas gifts this year point to an above-average holiday season for the nation's retailers. Gallup finds Americans expecting to spend $781, on average, up from $704 last November.
Underscoring this relatively upbeat preliminary forecast for retailers is that Americans' comparison of their projected holiday spending this year to what they spent last year is slightly more positive today than in November 2013. In fact, it is one of the most positive assessments Americans have given about their holiday spending since 2007 -- right before the U.S. sank into the last recession.
Aligning With Hard Retail Data
The relationship between Gallup's Christmas spending estimates and actual holiday retail sales is complex, and not always precise. Still, Gallup has been measuring U.S. Christmas spending intentions since 1999, and over that time, the November estimate has been particularly useful in forecasting changes in holiday sales. In years when consumers' projected holiday spending has been either flat or up slightly -- such as Gallup finds today -- actual retail sales tend to be fairly strong.
U.S. consumers remain less extravagant in their Christmas shopping intentions than they were immediately prior to the recession, when expecting to spend $800 or more on average on gifts was the norm. But they are approaching that level today. If consumers' higher estimates persist into November, this points to a strong holiday shopping season.
While no single aspect of the economy this year might be credited with boosting consumers' current Christmas budget, economic confidence has been on an even keel for over a year now, with no major economic or political crisis throwing it too far off track, and this may be increasing Americans' willingness to splurge at this time of year. Similarly, while Americans' normal daily spending reports have not increased in the past year, they have been steady at a high level relative to where they were in the prior recession-tinged years.