Part 4/15:
Holiday Spending and Consumer Confidence
Consumer confidence, crucial for holiday retail seasons, is pointing downward. Survey data indicates that Americans plan to spend significantly less on holiday gifts and non-gift items compared to last year—a 3.9% decrease in gift spending and a 12% drop on non-gifts. Consumers are most influenced by promotions and price sensitivity, reflecting their tightening budgets amid fears of job losses.
Additional surveys suggest that consumers are lowering their expectations for income and future job prospects. These sentiment shifts are happening against a backdrop of more subdued stock market valuations, which increasingly disconnect from the actual state of the economy.