Holiday spending projected to reach highest level in 15 years

More than a third of Americans plan to spend at least $1,000 on holiday gifts this year, the highest proportion recorded in at least 15 years, according to the CNBC's "All-America Economic Survey" published Sunday.

The poll, conducted Dec. 4-8 among a representative sample of 1,000 adults nationwide, reveals that 36% of respondents expect to shell out $1,000 or more on holiday shopping. The figure is up markedly from 29% in 2024 and 32% in 2022, and contrasts with levels in the early 2010s, when only one in four Americans planned to spend that amount.

According to the results, the average planned holiday shopping expenditure stands at $1,016, virtually unchanged from last year, when it stood at $1,014. Among those planning to do some gift spending, the average rises to $1,199, up from the $1,154 recorded in 2024.

The survey shows that the middle and lower ranges of spending have remained relatively stable. Approximately 22% of respondents plan to spend less than $200, while 20% anticipate shelling out between $200 and $499. Another 19% estimate spending between $500 and $999, figures in line with historical patterns.

In the eyes of CNBC's analysts, the data points to a widening prosperity among American households, with significant growth in the group that has the ability and willingness to spend heavily during the holiday season.

The increase in high-end spending coincides with a higher level of participation in the financial markets. According to the survey, 60% of Americans claim to have money invested in the stock market, including retirement accounts, a proportion close to historic highs. This factor suggests that the wealth effect from strong stock market performance is driving discretionary spending among a broader segment of the population.

Consumer plans vs. General perception of the economy

However, consumer plans contrast with the general perception of the economy. Some 76% of respondents rate the current economic situation as fair or poor, and 61% consider their household income to be below the cost of living. Even so, only 41% plan to reduce their Christmas spending from last year, while 42% expect to spend a similar amount and 16% plan to increase their expenditure.

The survey also highlights a high level of confidence in planned budgets. Just 4% of participants stated they were unsure how much they will spend at Christmas, one of the lowest levels of uncertainty in the survey's history.

In terms of political affiliation, the differences are minimal. Among registered voters, 37% of Democrats and 39% of Republicans said they plan to spend $1,000 or more on Christmas gifts, a gap that is within the poll's margin of error, according to CNBC.