Close Menu
BestNewsOnline
    Facebook X (Twitter) Instagram
    BestNewsOnline
    • Retirement planning
    • Insurance
    • Real estate
    • Subscription
    BestNewsOnline
    Home»Personal Finance»Uncertainty clouds holiday shopping for consumers as inflation takes its toll
    Personal Finance

    Uncertainty clouds holiday shopping for consumers as inflation takes its toll

    October 21, 20223 Mins Read
    WhatsApp Facebook Telegram

    US households take on more debt as rates rise, sign of pressure on consumers

    Families don’t like to skimp on vacations, no matter the conditions.

    But with prices rising and fears of a recession, holiday shoppers are feeling less generous this season.

    investment related news

    Fear mounts that plummeting retail revenue could drop further

    CNBC Pro
    Fear mounts that plummeting retail revenue could drop further

    Many consumers plan to shop less — and at a discount, according to a recent Deloitte holiday retail report.

    Still, households will shell out an average of $1,455 in holiday gifts, similar to last year, according to the report.

    Learn more about personal finance:
    66% of workers are worse off financially than a year ago
    Consumers are prioritizing Netflix and Amazon Prime over groceries and gas
    Nearly Half of Americans Make This Mistake With Credit Cards

    Even though some consumers may end up spending as much or more than they did in 2021, this is largely due to higher prices, other reports also show.

    “Inflation is, by far, the biggest problem for households this year,” said Tim Quinlan, senior economist at Wells Fargo and author of its 2022 holiday sales report.

    Household finances have taken a hit with a lower savings rate and decline in real wageswhich could slow holiday sales, Quinlan said in the report.

    “At the end of the day, with inflation still a headache, the dollars don’t stretch that far and most consumers will still be looking for bargains.”

    The dollars don’t stretch that far, and most consumers will still be looking for bargains.

    Tim Quinlan

    senior economist at Wells Fargo

    A separate report from BlackFriday.com revealed that 70% of shoppers will consider inflation when shopping this holiday season and even more will be on the lookout for deals.

    Nearly 33% of shoppers also plan to buy fewer freebies this year, while around a quarter said they would opt for cheaper versions or more convenient freebies, such as gas cards, according to the report. TransUnion survey of holiday shopping.

    “People are trying to economize and make the most of what they have,” said Cecilia Seiden, vice president of retail for TransUnion.

    How to Avoid Vacation Debt

    “Remember not to go into debt for your holiday shopping,” warned Natalia Brown, client operations manager at National Debt Relief. “Debt prevents people from achieving their financial goals, such as building an emergency fund, buying a home and saving for retirement.”

    Vacation spending could come at a higher cost if it means taking on more credit card debt just as the Federal Reserve is raising interest rates to curb inflation, Quinlan added.

    The annual percentages are currently close to 18%, on average, but could be closer to 19% by the end of the year, which would be an absolute recordaccording to Ted Rossman, senior industry analyst at CreditCards.com.

    This will make things worse for consumers heading into 2023, Quinlan said. “In many ways, we consider this year’s holiday shopping season to be the last hurray.”

    Subscribe to CNBC on YouTube.

    Add A Comment
    Leave A Reply Cancel Reply

    What's hot

    Resources for Your Health – InsuranceNewsNet

    November 26, 2022

    Health Care Authority celebrates three years of comprehensive insurance system

    November 26, 2022

    Palo Alto townhouse plans get big boost from real estate deal

    October 21, 2022

    Medicare for All, timely prescription – InsuranceNewsNet

    October 22, 2022
    Don't miss

    The Southern Nevada industrial market continues to cover it

    November 5, 2022

    Phat Dat Real Estate Development: successfully transfers a project to 197 rue Dien Bien Phu

    December 5, 2022

    Sale concluded in Springfield: $254,000 for a six-bedroom house

    December 20, 2022
    Picked for you

    LACERA invites tenders for the system’s emerging real asset management program

    Retirement planning February 2, 2023

    The Los Angeles County Employees Retirement Association invites proposals from qualified companies to implement the…

    BestNewsOnline.net is owned and managed by

    Top10 International FZ LLE
    Office 2002, 20th Floor, Creative Tower
    Fujairah, United Arab Emirates
    TRN: 100608946800003

    • Home
    • Contact us
    • Privacy policy
    • Terms and services

    Type above and press Enter to search. Press Esc to cancel.