Holiday Spending to Rise Despite Tariffs

RAPAPORT US households are planning to spend 4% more this holiday season, as consumer confidence has improved in the current economic climate, the National Retail Federation said Wednesday "The holidays are just around the corner, and consumers are ready to shop," said Matthew Shay, CEO of the NRF "Confidence is near an all-time high, unemployment is the lowest we've seen in decades, and take-home wages are up.

All of that is reflected in consumers' buying plans." Anticipating the tariff hike on goods from China, retailers imported large volumes for the holiday season before the tariffs took effect, Shay explained Consumers have allocated $638 of their total outlays to buying gifts, while $215 will go toward non-gift holiday items, including food, flowers and greeting cards Among the 7,313 consumers surveyed, jewelry was low on the list of most-desired gifts: Only 22% said they wanted to receive products from that category.

Some 60% wanted to get gift cards, while 53% chose clothing and accessories Earlier this month, the NRF predicted holiday sales in the US would grow between 4.3% and 4.8% for a total of $717.45 billion to $720.89 billion. . Source