Economic uncertainty fuels increased holiday spending and stockpiling behavior
AUSTIN, Texas, Dec. 11, 2024 /PRNewswire-PRWeb/ -- CreditCards.com, a leading resource for credit card information and financial literacy, has released findings from a December 2024 survey examining consumer spending habits amid economic uncertainty and the announcement of President-elect Donald Trump's proposed tariffs.
The survey of 2,000 U.S. residents reveals an increase in holiday spending, with 1 in 3 Americans planning to purchase more than usual this season due to fear of rising costs and supply chain disruptions.
Key Findings:
- 30% of Americans plan to make more purchases than usual this holiday season.
- 39% of shoppers increasing their purchases cite fear of price hikes due to tariffs.
- 34% say they are "doom spending," stockpiling items out of fear or uncertainty about the future.
- 30% of respondents are likely to go into or worsen debt to secure purchases now.
Fear of tariffs and economic concerns drive increased spending
The survey reveals that nearly one-third of shoppers plan to stock up more than usual this holiday season. Among those increasing their purchases, 39% point to rising prices due to tariffs as the leading motivation. Additional factors include fears of supply chain disruptions (25%), societal instability (20%), and a potential recession (20%).
Holiday deals and tariffs influence large purchases
Among the 22% of respondents planning to make large purchases before the year ends, the most sought-after items include:
- Electronics (67%)
- Home appliances (37%)
- Furniture (32%)
- Home improvement materials (24%)
- Cars (22%)
Holiday sales play a critical role, with 92% of those planning large purchases saying they will take advantage of discounts. Tariffs also drive urgency, with 62% reporting that the proposed tariffs are influencing their decision to buy now.
Stockpiling essentials
Of the 34% of Americans stockpiling goods, the most common items include:
- Toilet paper (77%)
- Non-perishable food (76%)
- Medical supplies (58%)
- Over-the-counter medications (54%)
Other frequently stockpiled items include cosmetics or personal care products (34%), home goods or appliances (33%), firearms or ammunition (26%), and water filtration systems (25%).
Debt becomes a factor for holiday shoppers
With 30% of Americans indicating they are likely to go into or worsen debt to fund their purchases, financial concerns loom large. Among respondents, 26% plan to use credit cards for most of their shopping, while 32% will rely on them for some purchases.
"Generally, it's not a good idea to go into debt to make purchases that you can't afford right now," says John Egan, credit cards, insurance, and personal finance expert contributor at CreditCards.com. "But it might make sense to take a buy now, pay later approach if you're able to nail down a zero-interest or low-interest offer, and you can pay off the debt quickly. It also can be acceptable to take on debt if the money would cover a necessity, such as replacing a must-have car that needs thousands of dollars in repairs or covering emergency medical expenses."
This survey was conducted online by Pollfish on November 26, 2024. To view the full report, please visit: https://www.creditcards.com/statistics/1-in-3-americans-are-buying-more-now-out-of-fear-of-future-tariffs/
Media Contact
Jennifer Miller, CreditCards.com, 000-0000, [email protected]
SOURCE CreditCards.com
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