Statistics provided by market research firm NPD Group show that 29% of US consumers are considering tightening their spending budgets this holiday shopping season due to a marked increase in negative sentiment about the economy and personal finances, Zhitong Financial APP has learned. Some analysts believe that news of inflation, commodity supply shortages and rising interest rates is likely to destroy the economy faster than macro factors themselves.
Marshal Cohen, chief retail consultant at NPD, said: "consumers are ready to go out to celebrate the 2022 holiday shopping season, but optimism like last year has been hit because financial concerns have led them to tighten their budgets compared with last year."
Statistics show that 1/5 of holiday shoppers say they will spend less during the holiday because their economic situation has changed. More than 1/10 of consumers said they would spend less on gifts so they could spend more money on holiday entertainment-related expenses such as food, drinks and decorations.
According to statistics from NPD, 39% of respondents said they started shopping in advance before October. Cohen said early promotions will help consumers shop throughout the holiday, expanding the number of shopping options. Generally speaking, the holiday shopping season in the United States usually starts in December.
Halloween is one of the holidays that benefit from a wave of early shopping, and Halloween spending is expected to hit an all-time high this year, according to the National Retail Federation. But these figures are largely based on a survey conducted in the first week of September-before the Fed last raised interest rates.
Deloitte's annual holiday retail sales forecast shows that holiday retail growth will slow by 4 to 6 per cent between November and January.
Anthemos Georgiades, chief executive of Zumper, a housing rental website, said: "talk of a possible recession is forming a self-fulfilling prophecy." Up to 76% of u.s. residents surveyed by the company's annual report said they were in recession.
"if 3/4 of Americans really think we are in recession and cut budgets as a result, then the impact of the economic situation will be far-reaching and undeniable," Georgiades said.