More consumers in the United States, responding to a Citi Economic Pulse study, said they would increase spending in the holidays and fewer said they are cutting back on expenses. In a survey, sponsored by Citi and conducted by Hart Research, only 35% said they would be spending less than last year, reflecting the lowest level of holiday budget cutbacks since the financial crisis.
On the flip side, Citi pointed out, 63% of Americans said they plan to spend the same or more, with 11% saying they would spend more, and 52% saying they would spend the same, on holiday shopping in 2013.
Compared to recent years, consumers stated that they would increase holiday budgets with 29% of Americans planning to spend more than $1,000 this holiday season, up from 22% in 2011, according to Citi. Consumers who plan to shop for the holidays said they would 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.