High prices are sapping some of the cheer out of the holidays.
A recent Ipsos poll found that current economic conditions are leading more than two-thirds of Americans to plan on cutting back on holiday spending in categories like dining out, travel, decorating, and hosting parties.
Among those who said they’re making cuts, two-thirds said they intend to buy fewer gifts overall, and 46% said they’re getting gifts for fewer people — up sharply from 37% last year.
David Brown, an entrepreneur with several lines of business in Georgia, told Business Insider his Christmas list is getting shorter this year as he prioritizes the people he cares about most, like his kids, his wife, his mom, and a few close friends.
“Christmas time is my favorite time of the year because it’s more peace, it’s more love in the air, more family bonding time,” he said.
Brown said the economy itself wasn’t directly influencing his decision to pull back on gift-giving this year, so much as the effect the economy was having on the people in his community.
Reciprocity, it seems, has been in short supply this year.
“I understand a lot of people are not fortunate at this moment in time, but it’s the thought that counts,” he said of those who accepted his generosity without offering a gesture in kind.
Two-thirds of the Ipsos respondents said they expect electronics and gadgets to be more expensive this year, and about half said other popular categories like toys, apparel, and home goods will cost more.
But even if the gifts themselves don’t cost more than last year, this holiday season comes at a time when households have been looking for savings to offset higher bills.
In particular, Jefferies analysts said in a note this week that they are seeing consumers cut back on grocery spending to offset higher gas prices.
Americans will still give plenty of gifts this year, but it’s looking like they will be a bit more selective about who they consider naughty or nice.
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