Holiday spending set to fall in US, 27 other countries

Holiday spending set to fall in US, 27 other countries
Cost-of-living budget squeeze is bad news for retail and hospitality sectors.
NOV 09, 2023

Nearly three quarters of consumers are delaying holiday purchases for discount shopping events such as Black Friday or Singles Day, and more than half plan to reduce spending to save money, according to a study from Ernst & Young. 

The report underscores how consumer spending patterns are shifting, with higher levels of inflation, rising interest rates and credit-card delinquencies eroding purchasing power, Jim Doucette, consumer products and retail leader at EY-Parthenon, said in an interview. 

The findings are from a poll of more than 22,000 consumers in 28 countries, including the US, China, India, Brazil, Japan and Germany. Of those surveyed, 80% say they’re concerned about their finances. To stretch budgets, more consumers plan to cook and entertain at home this year and cut back on restaurant takeout. 

Kristina Rogers, EY’s global consumer leader, added that consumers are “constantly re-evaluating what they deem to be essential, and are increasingly avoiding non-essential impulse purchases.” 

The study, which was conducted in September and early October, shows that 50% of consumers say they will shop mostly or only online this season — a 16% increase from last year, but still below the 61% that favored e-commerce in 2020. Ten percent say they’ll only do in-store shopping this year, which is 14% less than last year and barely higher than in 2020, when the pandemic was still limiting consumer mobility. 

EY’s survey shows that 39% of consumers in the US and 35% in Europe plan to spend less during the holidays. In China, only 11% say they’ll spend less this year, while 45% plan to increase spending. 

Latest News

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions
Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions

A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.

Why the evolution of ETFs is changing the due diligence equation
Why the evolution of ETFs is changing the due diligence equation

As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management