Skyrocketing energy costs are expected to cut into holiday spending this year. “The bottom will not fall out of retail spending but it will be softer,” said CUNA Chief Econonmist Bill Hampel in a press release. “It is noteworthy how frequently consumers cited rising energy costs as a reason they plan to cut back their holiday spending, far more frequently than they cited general family finances,” he said.
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CUNA, along with the Consumer Federation of America, surveyed more than 1,000 Americans in November on their forecasted holiday spending. Thirty-eight percent of respondents said higher gasoline and energy costs will cut into their holiday spending—up from last year’s 32 percent.
The price of gifts is also a factor in holiday spending. Thirty-two percent of the 1,000 respondents say they will somewhat or greatly decrease their holiday spending due to the price of gifts. Last year that number was 26 percent.