Citi Survey Reveals More Americans Increasing Holiday Spend
December 17, 13 (IDEX Online News) – As holiday season spending reaches its zenith, a survey from Citi, a global bank, may bring some more cheer to retailers feeling the pinch. According to the survey, only 35 percent of respondents said they would be spending less than last year, reflecting the lowest level of holiday budget cutbacks since the financial crisis.
Sixty-three percent of Americans plan to spend more (11 percent) or the same (52 percent) on holiday shopping this year than they did last year.
The report shows that consumers’ estimated holiday budgets have reached a high in comparison to recent years. Twenty-nine percent of Americans estimate they will be spending more than $1,000 this holiday season, up from 22 percent in 2011. Amongst those planning on shopping for the holidays, Americans will spend an average of $968, up $60 from 2011.
“It’s reassuring to see spending on the rise, since the increase in Americans’ holiday budgets may indicate a more optimistic outlook towards making financial progress in 2014,” said Linda Descano, CFA, head of Content and Social, North America Marketing at Citi, and president and CEO of Women & Co., Citi’s personal finance resource for women.
According to Citi, despite consumers being eager to save, they are not taking full advantage of all of the opportunities to stretch their budget. Only one in five are comparing prices online, and just 16 percent shopped early to get better deals. Social media is only currently being used by 8 percent of Americans. Credit cards with a price-back guarantee are only being used by 6 percent of consumers and only 5 percent are using their credit card reward points to purchase gifts.
“Americans may be leaving some simple holiday money-saving options on the table,” said Descano. “By comparing prices online, using credit card rewards to purchase gifts, and using social media to find the best deals, many still have time to stretch their holiday budget this year.”
The survey also shows that many people are beginning to feel more positive about the economy. The survey found that 37 percent of respondents rated the condition of the economy in their area to be good or excellent, reflecting the highest levels of positivity since the Citibank Economic Pulse began in 2009. However, 27 percent of consumers feel that they are better off now than a year ago, up from 20 percent in August 2012, and 69 percent are optimistic that their personal financial situation will get better in 2014.
However, 37 percent of Americans, up from 30 percent in August 2012, said that discomfort with their current level of debt weighs on their overall economic sentiment. Another 48 percent reported discomfort with their current level of savings.