Holiday spending soars despite growing economic divide

WILMINGTON, NC (WWAY) — Holiday spending is surging with Christmas just one week away.  

According to Adobe Analytics, spending last month grew by nearly 10% from last year, keeping on track with holiday spending estimates. 

Although consumer sentiment tell another story. One survey found that 72% of Americans say they will be spending less on gifts this year.   

UNCW Economics Professor Mouchine Guettabi attributes that divide to the fact that many Americans saw their equity grow in 2024, while others saw their dollar depreciate in value.  

“I don’t want to say it’s the ‘haves and have nots,’ but obviously we’ve seen considerably higher prices in real estate, in the stock market, and those gains have gone to a very specific portion of the population,” Guettabi said. 

While nearly all metrics show an economy that’s growing—Guettabi says—delinquency rates, which reflect the percentage of loans that are past due, have increased.

“The percentages are still relatively small, but there is no doubt that that is the metric that is flashing red right now, and it’s the one metric that’s actually worse from pre-pandemic levels,” Guettabi noted. 

Many of the holiday shoppers we spoke with say they’re able to buy gifts, but that it’s not easy. 

“Well this year is a little bit harder definitely with the economy,” one shopper said. 

“We’re pretty good, well, my husband’s really good with keeping us a budget. I get to go do the fun part,” another shopper explained. 

“For me personally, it’s been hard just to figure out, I mean everything’s expensive, so figure out what to get and if it’s worth the money,” one shopper noted. 

“Not overdo it this year, cause we don’t know what’s next year, but you know, leave it up to God,” another shopper added. 

Although some feel their holiday budget may not stretch as far as it used to, one shopper says you don’t always need funds to spread the holiday magic.  

“I don’t think you need to spend too much money to do that. You just got to know what everyone’s into and something small that will spark their interest,” she said.