A new Michigan State University survey finds holiday season shoppers are likely to spend more on goods and services due to inflation.
Americans are contending with record high inflation this year, and that’s bringing a little holiday sticker shock.
MSU surveyed more than 500 people about their holiday shopping plans.
Researchers found 35% believed they would spend about the same as they did in 2021.
Survey co-leader Dr. Ayalla Ruvio with the MSU Eli Broad College of Business says their purchasing power will be lower.
“Even if inflation slows down, it doesn’t mean that prices are going down,” Ruvio said. “It just means that pricing aren’t going any higher, but they are higher compared to last year.”
Additionally, the survey found 62% of respondents were concerned about their job security.
“Will consumers spend more this season? Probably,” Ruvio added. “But it doesn’t mean that they will buy more; it just means that prices are higher. So they’re pressed to spend more, even if they were to buy exactly the same thing that they bought last year.”
Ruvio says consumers don’t believe prices will go any lower, and many took advantage of deals that were offered in October.
She says fewer shoppers are likely to engage in impulse buying on Black Friday, a sign that indicates consumers believe the economy is in recession.