After two years of pandemic fears and supply chain issues, Americans should be able to breathe a sigh of relief this holiday season over a return to normalcy -- but not so fast. With inflation soaring, new data shows Americans are worried about the upcoming holiday season and what spiking costs could mean for family celebrations and traditions.
According to a new poll from NewsNation that surveyed 1,017 registered voters from Sept. 26-29, 64% of respondents were very concerned about inflation, and 28% were somewhat concerned. However, less than 7% said they were not too concerned or not concerned at all.
Respondents were also asked what they think the biggest issue facing the U.S. is, to which the majority, 65%, said inflation. The next closest was crime at 18%, followed by COVID-19 at 9%.
But the poll didn’t just ask about inflation; it also asked how respondents felt about this holiday season compared to the last.
Respondents were asked if they planned on spending less, more, or the same. The lowest response was 14% who said they were going to spend more, followed by 39% who planned on making no changes, and 46% who were budgeting to spend less. Another survey from Bankrate showed similar results, with 40% saying inflation would change how they spend.
When asked if they were concerned about the impact of inflation on holiday spending, 77% said they were “somewhat” or “very” concerned. However, 23% said they were “not too” or “not at all” concerned.
The uncertainty about inflation and the economy has created a volatile space for shoppers and retailers alike. And with two years of disruption from COVID-19, consumers are no better off than they were in 2020.
The NewsNation poll found that 47% of American voters felt worse off financially today than they had been a year ago.
But not all is lost as there have been some trends pointing towards better days ahead. Wells Fargo economists Tim Quinlan and Shannon Seery shared that consumer confidence has hit its strongest level since April, partly due to a drop in fuel costs.
“Falling gasoline prices and a still-tight labor market are the main reasons we have seen a recent rebound in confidence,” they said. “But as inflation persists and the Fed lifts rates to combat it, we are unlikely to see confidence approach pre-pandemic levels.”
In order to fit shopping into their budgets, Americans plan on doing a couple of things, including shopping earlier than usual, using credit cards and payment plans, and spending less overall.
According to the Bankrate survey, 84% of holiday shoppers are hoping to save money this year. The poll found that 40% said they would buy fewer gifts, 21% said they would buy from cheaper brands, and 41% said they would look for coupons, discounts, or deals.
However, when consumers plan on shopping is also critical to this holiday season as a Creatopy survey found that 29% plan on buying a month early, and 20% said they would shop two months earlier, Retaildive reported.
With inflation not likely to see a significant slow down this coming month, experts say Americans will need to get creative with holiday shopping and celebrations if they mean to make it through the holiday season without leaving their wallets empty.
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