{"id":53900,"date":"2025-10-31T12:22:57","date_gmt":"2025-10-31T12:22:57","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/americans-plan-to-spend-big-this-holiday-season-even-as-they-fret-about-the-economy-study-finds\/"},"modified":"2025-10-31T12:22:57","modified_gmt":"2025-10-31T12:22:57","slug":"americans-plan-to-spend-big-this-holiday-season-even-as-they-fret-about-the-economy-study-finds","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/americans-plan-to-spend-big-this-holiday-season-even-as-they-fret-about-the-economy-study-finds\/","title":{"rendered":"Americans plan to spend big this holiday season even as they fret about the economy, study finds"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div id=\"\">\n<p>Americans are expected to open their wallets this holiday season, increasing their gift budgets even as a slowing job market and stubborn inflation weigh on consumer confidence, according to a new analysis from Visa Business and Economic Insights.<\/p>\n<p>U.S. consumers are forecast to spend an average of $736 each on holiday gifts, a 10% increase from the $669 reported last year, Visa said in its 2025 holiday spending <a href=\"https:\/\/corporate.visa.com\/en\/sites\/visa-perspectives\/trends-insights\/2025-holiday-spending-outlook.html\" target=\"_blank\" rel=\"nofollow noopener\">outlook<\/a>.<\/p>\n<p>Inflation partly explains this year&#8217;s projected sales growth, with the Consumer Price Index showing that prices <span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/cpi-report-today-inflation-september-2025-tariffs\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">rose 3%<\/a><\/span> on an annual basis in September. But Americans are also planning on upping their gifting, especially older consumers, with baby boomers forecasted to boost their holiday spending by 21%, the study found.<\/p>\n<p>The robust spending outlook highlights consumers&#8217; resilience, even as confidence surveys paint a more cautious picture.<\/p>\n<p>&#8220;We are clearly seeing consumers spend in a far better, more robust way than what we&#8217;re seeing in the consumer sentiment and confidence data,&#8221; Michael Brown, a principal U.S. economist at Visa, told CBS News.<\/p>\n<p>Visa tapped retail sales data from the U.S. Department of Commerce \u2014 excluding automobiles, gas stations and restaurants \u2014 for its holiday spending projections.<\/p>\n<p>In the years leading up to the pandemic, changes in consumer spending corresponded more closely with consumer sentiment, Visa&#8217;s analysis shows. But that link has weakened in recent years. In April, for example, when consumer confidence fell to its lowest level since the pandemic, real consumer spending increased 3.1% on an annual basis, the Visa report points out.<\/p>\n<p>Consumers continue to express dour views about the economy, with sentiment <span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/university-michigan-consumer-sentiment-index-final-october-2025\/\" data-invalid-url-rewritten-http=\"\">falling for a third consecutive month<\/a><\/span>\u00a0in October due to worries about a weaker job market and rising inflation, according to the latest University of Michigan sentiment index. Another <a href=\"https:\/\/www.prnewswire.com\/news-releases\/us-consumer-confidence-virtually-unchanged-in-october-302596825.html\" target=\"_blank\" rel=\"nofollow noopener\">measure<\/a> from the Conference Board, a nonprofit group, also shows confidence in the economy edged down slightly this month.<\/p>\n<p>What explains the disconnect? Steady wage gains have kept spending aloft, with many Americans continuing to shop despite higher prices because their take-home pay remains solid, Brown said.<\/p>\n<p>Other holiday outlook forecasts from groups like <a href=\"https:\/\/business.adobe.com\/resources\/holiday-shopping-report.html\" target=\"_blank\" rel=\"nofollow noopener\">Abode for Business<\/a> and polling firm\u00a0<a href=\"https:\/\/news.gallup.com\/poll\/697061\/holiday-shoppers-plan-spend-briskly.aspx\" target=\"_blank\" rel=\"nofollow noopener\">Gallup<\/a> point to the same conclusion as Visa&#8217;s: Americans are planning to dish out billions on holiday gifts, travel and food despite their gloomy views on the economy.\u00a0<\/p>\n<p>Still, some are exercising caution in their purchasing, Brown said, noting that low- and middle-income households will face the biggest tradeoffs this holiday season. Higher costs for essentials such as groceries are leaving them with less room for discretionary spending, he added.<\/p>\n<p>&#8220;There is absolutely an undercurrent of trying to make the dollar stretch, given some of those necessities are costing a bit more this season,&#8221; Brown said.<\/p>\n<section class=\"content__body--footer\">\n<p class=\"content__meta--editors\">\n      Edited by<\/p>\n<p>                                  <a href=\"https:\/\/www.cbsnews.com\/team\/aimee-picchi\/\" class=\"byline__author__link\" data-invalid-url-rewritten-http=\"\">Aimee  Picchi<\/a>\n                      <\/p>\n<\/section>\n<p>  <!-- data-recirc-source=\"queryly\" --><\/p>\n<aside class=\"component list recirculation component--type-recirculation \">\n        <\/aside>\n<section class=\"content__body--footer\">\n      <!-- tags --><\/p>\n<section class=\"content__tags\">\n<\/section>\n<\/section><\/div>\n<p><script async 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market<\/p>\n","protected":false},"author":1,"featured_media":53901,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[1407,730,2400,957],"class_list":["post-53900","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-watch","tag-e-commerce","tag-economy","tag-holiday-season","tag-inflation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Americans plan to spend big this holiday season even as they fret about the economy, study finds - World News<\/title>\n<meta name=\"description\" content=\"Visa predicts Americans will spend an average of $736 on holiday gifts in 2025, a 10% increase from the $669 reported last year.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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