Inflation causing less holiday spending: CNBC All-America Economic Survey

Inflation appears to be undermining holiday cheer for some Americans as they head out to buy gifts this holiday season, according to the CNBC All-America Economic Survey.

The survey found that the “high cost of goods” emerged as a key factor influencing how much shoppers spend and where they spend it; This indicates that the increase in prices of imported goods due to inflation and customs duties in the last few years is also felt at the cash register.

The nationwide survey of 1,000 people found, with a margin of error of +/- 3.1%, that high cost of goods is the top reason Americans spend less and, in a first for the survey, the main reason they spend more.

Of those who spend less, 46% say it is because the cost of goods is high; this is a 10-point increase from the 2024 survey. Even more striking, 36% of those who spend more say this is due to higher prices; This is an 11 point increase compared to last year. Over the past six years, most Americans said they spent more because they earned more and the economy was doing well; They tended to spend less because they earned less or thought the economy was weak.

“Nearly 70% say prices are higher now, and that affects both people who are spending more and people who are spending less than ever before,” says Jay Campbell, a partner at Hart Research, the poll’s Democratic pollster.

The issue of affordability is clearly on consumers’ minds; 61% of respondents say they believe prices are rising faster than their income; including 74% of those with incomes between $30,000 and $50,000 and 78% of those making $30,000 or less.

Overall, 41 percent of Americans plan to spend less this year; 42 percent say they would spend about the same amount, and 16 percent say they would spend more. Americans generally say they will spend less each year, but this year’s figure is 6 points higher than a year ago, the biggest gain since 2022’s inflation surge.

Americans plan to spend an average of $1,016 on holiday gifts this year; This figure is almost at the same level compared to last year. But that figure is $1,199 among Americans buying gifts, a modest 3.9 percent increase from 2024.

The survey found that 60 percent of the public are pessimistic about the current state of the economy and pessimistic about the outlook; this is the highest level since December 2023. The percentage of people optimistic about the present and the future decreased by three points.

Democrats and independents are overwhelmingly pessimistic, as they have been throughout much of Trump’s presidency. But some economic concerns seem to bother even Republicans. While 93 percent of Democrats and 86 percent of independents rate the economy as good or bad, 53 percent of Republicans say the same.

“It’s a move by a majority of Republicans to say, ‘Yeah, it’s a bad sign if everything is perfect or good, fair or bad,'” said Micah Roberts, a partner at Public Opinion Strategies, the poll’s Republican pollster. Republicans also say, “We see that the expectations for the economy for next year have worsened.”

Concerns about prices appear to have changed the way at least some Americans shop. The survey found a 9-point increase among Americans shopping online, a 3-point increase among those who said they planned to do most of their holiday shopping at big-box stores like Walmart and Best Buy, and a 6-point increase among wholesale retailers.

Data shows those who spend more than $1,000 are more likely to visit places like costco This year, those who spend between $500 and $1,000 are more likely to look online. Compared to 2024, the shift to online shopping was greatest among those with incomes under $30,000, women of all ages, and those who spent the least on holiday items.

You can find full details of the survey here Here.