Inflation causing less holiday spending: CNBC All-America Economic Survey

Inflation looks to be sapping some of Americans’ holiday cheer as they head out to buy gifts this Christmas season, according to the CNBC All-America Economic Survey.

The survey found the high cost of goods has emerged as a major factor affecting how much shoppers spend and where they spend, suggesting inflation of the past several years and the rise in import goods prices from tariffs are being felt at the checkout counter.

The survey of 1,000 people nationwide, with a margin of error of +/- 3.1%, found that the high cost of goods is the top reason Americans are spending less and, in a first for the survey, the main reason they are spending more.

Among those spending less, 46% say it’s because of the high cost of goods, a 10-point increase from the 2024 survey. Even more striking, 36% of those spending more say it’s because of high prices, an 11-point increase from last year. The past six years, most Americans said they spent more because they were earning more and the economy was in good shape; they tended to spend less because they earned less or felt the economy was weak.

“Almost 70% say that prices are higher now, and it’s affecting people both who are spending more and who are spending less in a much bigger way than it ever has,” says Jay Campbell, partner at Hart Research, the Democratic pollster for the survey.

The affordability issue clearly is weighing on consumers’ minds, with 61% reporting they believe prices are rising faster than their incomes, including 74% of those with incomes between $30,000 and $50,000 and 78% of those earning $30,000 or less.

Overall, 41% of Americans plan to spend less this year, with 42% saying they will spend about the same and 16% saying they will spend more. Americans generally say they will spend less each year, but this year’s number is 6 points higher than a year ago, for the biggest gain since the inflation surge in 2022.

Americans plan to spend on average $1,016 this year on holiday gifts, about flat with last year. But the figure is $1,199 among those Americans who are actually buying gifts, for a decent 3.9% increase over 2024.