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Holiday spending is expected to return to pre-pandemic levels, bolstered by a strong U.S. consumer
ByShrey Dua, InvestorPlace Assistant News WriterDec 13, 2023, 12:38 pm EDT
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- Holiday spending is expected to continue climbing in 2023.
- Americans are individually expected to spend about $1,000 across gifts, decorations, food and other holiday spending.
- Unsurprisingly, gifts typically make up the majority of Christmas spending, at $648 per person.
With Christmas just around the corner, families everywhere are setting up trees, buying gifts and maybe even making a holiday roast or two. Still, while it may seem par for the course, Santa spending can add up fast. Just how much does the average Christmas cost?
Well, according to the National Retail Federation (NRF), holiday spending between November and December is expected to reach record levels this year. Indeed, the organization forecasts holiday spending will grow between 3% and 4% over last year, to between $957.3 billion and $966.6 billion.
“It is not surprising to see holiday sales growth returning to pre-pandemic levels,” said NRF President and CEO Matthew Shay. “Overall household finances remain in good shape and will continue to support the consumer’s ability to spend.”
This year is expected to be consistent with the 3.6% average holiday retail growth rate experienced from 2010 to 2019. During the pandemic, holiday spending actually increased dramatically as well, with 2020, 2021 and 2022 logging 9.1%, 12.7% and 5.4% gains, respectively.
Holiday spending also reflects the strength of the consumer, which has been notably resilient this year despite elevated interest rates and inflation.
“For all that the consumer has kept the economy afloat, the composition of spending from goods to services will also define holiday sales trends,” said NRF Chief Economist Jack Kleinhenz. “Service spending growth is strong and is growing faster than goods spending. The amount of spending on services is back in line with pre-pandemic trends.”
How Much Does the Average Christmas Cost?
On a more household level, Americans expect to spend slightly less on Christmas gifts on average compared to 2022. Indeed, according to a Statista survey, American families project spending an average of $923 on Christmas gifts in 2023, just slightly less than the $932 recorded in 2022.
This represents the highest result of the survey since 2019, when respondents expected to spend $942.
Unsurprisingly, Christmas gifts make up the majority of total holiday budgets. In 2021, this amounted to $648 per person, on average. Next, non-gift items like food and decorations accounted for $231 while other non-gift purchases came to $118. In total, U.S. holiday spending amounts to an average of about $1,000 per person, per Bankrate.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.
Article printed from InvestorPlace Media, https://investorplace.com/2023/12/santas-spending-how-much-does-the-average-christmas-cost/.
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