CHARLOTTE, N.C. — Americans are poised to spend big this holiday season, with consumer confidence and anticipated spending reaching new heights, according to the National Retail Federation's latest survey.
The holiday spending trend suggests a renewed sense of economic confidence among Americans, with consumers ready to invest in gifts, food, and winter holiday essentials that bring joy and festive spirit.
The 2024 holiday shopping season is projected to see consumers spending an average of $900 per person, an increase of $15 from the previous year. Financial advisor Mark Henry from Alloy Wealth Management suggests this spending surge reflects a surprisingly positive economic outlook, which he notes is "counterintuitive" compared to predictions just 90 days ago.
"People feel better about the future," Henry said, highlighting expectations of potential wage increases and economic optimism. He believes the robust consumer spending could have a drastic impact on the economy as it enters the first quarter of 2025, potentially benefiting small businesses and everyday Americans.
The increased spending comes after a tumultuous political period, with many Americans eager to embrace holiday festivities and shopping. The National Retail Federation's survey indicates consumers are more focused on what to spend money on, rather than questioning their financial capabilities.
However, Henry cautions consumers to remain financially responsible.
"Put your family on a spending plan, instead of a budget," he advises, emphasizing the importance of understanding affordability and avoiding unnecessary debt. Specifically, he recommends against using credit cards which could add to existing financial burdens.
Looking ahead, Henry expresses hope for potential tax breaks and remains optimistic about the economic trajectory, predicting the economy will be bullish into 2025.
Contact Colin Mayfield at cmayfield@wcnc.com or follow him on Facebook, X and Instagram.