Holiday Spending to Rise Despite Tariffs

RAPAPORT... US households are planning to spend 4% more this holiday season, as consumer confidence has improved in the current economic climate,the National Retail Federation (NRF) said Wednesday. "The holidays are just around the corner, and consumers areready to shop," said Matthew Shay, CEO of the NRF. "Confidence is near anall-time high, unemployment is the lowest we've seen in decades, and take-homewages are up. All of that is reflected in consumers' buying plans." Americans said they would shell out approximately $1,007 onseasonal purchases, compared with $967 in 2017, according to a survey the tradeorganization has released. Anticipating the tariff hike on goods from China, retailersimported large volumes for the holiday season before the tariffstook effect, Shay explained. Consumers have allocated $638 of their total outlays to buyinggifts, while $215 will go toward non-gift holiday items, including food,flowers and greeting cards. The remaining $155 will be spent on other non-giftpurchases that take advantage of deals and promotions offered by retailersthroughout the season, the survey found. Among the 7,313 consumers surveyed, jewelry was low on the list of most-desired gifts: Only 22% said they wanted to receive products from that category. Some 60% wanted to get gift cards,while 53% chose clothing and accessories. Entertainment - which includes books, movies andmusic - accounted for 37% of the vote, with electronics and home d?(C)cor garnering 29%and 23%, respectively. At the bottom of the list were gifts of personal care orbeauty products, sporting goods, and home-improvement items. Earlier this month, the NRF predicted holiday sales in the US wouldgrow between 4.3% and 4.8% for a total of $717.45 billion to $720.89 billion. Image: Holiday gifts. (Pixaby)