WASHINGTON -- More consumers are reporting they intend to spend for the holidays than they did last year, a survey finds.
It was conducted for the Consumer Federation of America and Credit Union National Association and compared projected holiday spending in 2014 compared to 2013. This year, 10% of respondents said they expect to spend more while 33% said they would spend less.
In 2013, 13% said they would spend more while 32% said they would spend less. The proportion who said they would spend less has declined steadily from 55% in 2008 to 32% last year before rising slightly this year. Because consumers almost always spend more than they plan to, year-to-year comparisons are meaningful, statisticians say.
Despite this expression of consumer spending restraint, indicators that range from falling unemployment to higher stock prices point to a stronger U.S. economy. Asked to compare their income today with their income a year ago, 27% said it is higher while only 21% said it is lower. Some 28% described their finances as better and 24% said worse.
The survey found continuing evidence of the widening gap between high- and low-income groups. Some 34% of those with household incomes of under $25,000, compared to 13% of those with incomes above $100,000, said their financial condition is worse than a year ago. Also, 33% of the low-income group, but only 13% of the high-income group, said their income is lower than a year ago.
These responses about debt and savings help explain income differences related to how one would use an unexpected windfall of $5,000. Just over half of the low-income group, and 27% of the high-income group said they would use such funds to pay down debt. In contrast, 32% of the low-income group and 56% of the high-income group said they would add the $5,000 to savings or investments.
Published by The Business Journal, Youngstown, Ohio.
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