Inflation Hits Holiday Spending

Benzinga

A CNBC survey shows more Americans plan to cut holiday spending as inflation and tariffs pressure budgets. Economic pessimism is rising, debt levels are higher, and shoppers are shifting toward wholesale clubs and online retailers.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:03The CNBC All-America Economic Survey found that high prices driven by inflation and tariffs

00:07are shaping how much and where Americans spend on Christmas gifts.

00:1241% of Americans plan to spend less this year, a six-point increase from last year,

00:17and the largest jump since the inflation surge in 2022.

00:21The survey found 60% of Americans are pessimistic about the economy and its outlook,

00:25the highest level since December 2023, while optimism declined by three points.

00:31The data show higher spenders are more likely to shop at wholesale stores like Costco,

00:36while lower spenders and lower-income shoppers are increasingly turning to online retailers.

00:41The survey found 57% of Americans are entering the holiday season with debt,

00:46up 11 points from last year, with a notable increase among 18 to 34-year-olds.

00:51For all things money, visit Benzinga.com.

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