A survey conducted by Ipsos for Rocket Mortgage and Redfin revealed 28% of consumers in the United States are trimming their decorating budgets this year, and 26% are reining in gift spending because of economic and financial uncertainty.
The results are in line with other market research suggesting that as the holiday season gains momentum, consumers are becoming more concerned about the macroeconomic environment and its effect on their finances.
Key findings of the Rocket Mortgage/Redfin survey:
- Among the 56% of consumers who say they’ll spend less on decorations this year, 44% cited economic uncertainty as the reason.
- Most Americans are spending less than $100 on decor this year and less than $500 on gifts.
- About one-quarter of Americans are spending as much on decor as they spend to satisfy their monthly housing bill.
- Consumers with children living at home are likely to top the holiday spending average this year, with 26% spending more on decorations and 27% spending more on gifts.
- People without kids living at home are less likely than their counterparts to be big spenders this year, with just 11% of that group spending more on decorations and 14% spending more on gifts.
The survey sponsors asserted U.S. consumers are finding ways to cope with conditions and celebrate the holiday season, but they’re doing so with more caution and creativity than in past years. As financial uncertainty tempers holiday spending, most households are keeping festive traditions alive on smaller budgets. However, Rocket Mortgage and Redfin warned modest holiday spending cutbacks are a reflection of broader economic anxiety and could foreshadow slower consumer spending in the new year.
