"Santa won't be the only one tightening his belt this year - the American consumer is already feeling the pinch, and many haven't even finished digesting their Thanksgiving stuffing. As we head into Black Friday weekend, the forecast for holiday shoppers may be chilly: prices on consumer goods are rising faster than is comfortable for many gift-givers, according to two recent reports by Bank of America."
"Sixty-two percent of the more than 2,000 respondents to Bank of America's holiday survey, conducted in late summer, said they expected financial strain tied to holiday expenses, and 58% say gifts feel more expensive. More than half of the respondents pointed to tariffs as a suspected cause. The firm found that tariffs announced this spring likely contributed to price increases in categories such as electronics and jewelry, goods often purchased as holiday gifts."
"Holiday spending per household is up about 6% according to the bank's card data, yet retail transaction volumes have declined slightly over the course of the year. The takeaway: shoppers are shelling out more, only to walk away with less. BofA's reports also point to a widening chasm in how those along different income brackets are likely to experience the season's bounty. Higher-income households continue to show spending and wage growth that outpace everyone else."
A late-summer holiday survey of more than 2,000 respondents found 62% expect financial strain from holiday expenses and 58% say gifts feel more expensive. More than half of respondents suspect tariffs as a cause, and tariffs announced in spring likely pushed up prices in electronics and jewelry. Holiday spending per household rose about 6% while retail transaction volumes declined slightly, indicating higher spending per purchase but fewer purchases. Higher-income households show stronger spending and wage growth, widening disparities and leaving many other consumers feeling stress at the checkout.
Read at Business Insider
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