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HOLIDAY SPENDING WILL
MODERATELY EXCEED 1996 LEVELS
New Englanders Will Spend
The Most This Season
The average American household will spend about $465 on gifts this Christmas, up from about $450 last year. This increase, in conjunction with household population growth, will lift U.S. retail sales over the $46 billion mark–an increase of about 3.5 to 4.0 percent over holiday sales last year.
The Conference Board's survey of holiday spending covers a nationally representative sample of 5,000 U.S. households. It was conducted by NFO Inc. of Greenwich, Connecticut.
The New England region will spend the most on holiday gifts, averaging about $593 per household. Lowest spending levels will be in the West North Central region ($395).
“The projected increase in Christmas spending is consistent with recent economic trends,” says Lynn Franco, Associate Director of The Conference Board's Consumer Research Center. “Consumer confidence levels remain strong, inflationary pressures continued to be rather subdued, and wages have moderately increased over the past year. While this Christmas doesn't appear to be a blockbuster, it does not look to be an unsuccessful one either.”
Among other survey findings:
–Some 34 percent of all households intend to spend $500 or more on Christmas gifts. Spending by these households will account for substantially more than half of all consumer expenditures on Christmas gift giving.
–Less than two out of every five households have set aside $200-$500 to spend on Christmas gifts.
–Less than 30% of households are projected to spend under $200 for Christmas giving this year.
–Households headed by individuals aged 45-54 represent the biggest spenders. Their average expenditure amounts to approximately $538.
–Homes headed by persons aged 35-44 and 55-64 represent the second largest spending group. Here, average expenditures are an estimated $490.
–Young homes–those headed by persons under age 25–and older homes–those headed by persons over age 65–plan to spend less than the national average.
–Homes with incomes in excess of $50,000 intend to spend an average of about $685 for Christmas gifts–almost one and a half times the national average.
How Much Will You Be Spending On Gifts
This Christmas?
Total U.S. $464 Region New England $593 Middle Atlantic $514 E.N. Central $488 W.N. Central $395 South Atlantic $457 E.S. Central $453 W.S. Central $444 Mountain $411 Pacific $438 Age Of Household Head Under 25 $398 25-34 $437 35-44 $491 45-54 $538 55-64 $491 65 & over $381 Household Income Under $15,000 $237 $15,999-$25,000 $339 $25,000- $35,000 $423 $35,000-$50,000 $515 $50,000 & over $683
*–These figures represent average planned household expenditures on Christmas gifts for 1997.
November 20, 1996 The Conference Board
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