Americans Will Spend Nearly $26 Billion On Valentine’s Day Despite Inflation And Recessionary Risk: Estimate

Ben ZeisloftJanuary 25, 2023

Americans are expected spend around $25.9 Billion. Valentine’s DayThis year was one of the most expensive ever recorded, despite it being one of the lowest spending years. inflationary The looming danger of an apocalypse and pressures recessionAccording to a survey From the National Retail Federation.

The average lovebird will spend $192.80 each on their significant other. This is a 10% rise from $175.41 last season and the second-highest figure recorded since the group began tracking holiday spending almost two decades ago. The $17 increase in spending per consumer will see $14 go to pets, friends and co-workers rather than their significant others.

“Valentine’s Day is a special occasion to shop for the people we care most about,” Matthew Shay, President and CEO of the National Retail Federation, made these remarks. “This year, as consumers embrace spending on friends and loved ones, retailers are ready to help customers celebrate Valentine’s Day with memorable gifts at affordable prices.”

According to the trade association 35% respondents indicated that virtual shopping will be used. Roughly 32% plan to use online stores. “give a gift of experience,” This is an increase of 26% from last year. Particularly, men were more likely to give an experience-driven gift.

These findings are due to inflation remaining elevated in comparison to recent years but somewhat less than the record-setting highs of last summer. Prices fell slightly last month due to an increase in energy prices. The year-over-year change in inflation was 7.1% in November and 6.5% December. This is the largest overall decrease in three years. Food and shelter prices have continued to rise. report Source: Bureau of Labor Statistics

The December retail and food services sales were $677.1 billion adjusted for holiday and seasonal variations according to an advance estimate From the Census Bureau. The nominal increase in metric was 6% compared to the levels one year ago. Inflation therefore overtook the reading.

Data also from the National Retail Federation indicated Americans spent record amounts on Christmas and the Winter Holidays, even though American households were smaller. made Their debt usage surpassed all expectations. According to a survey, the average obligation of those who overspent their income rose to $1,549. This represents a 24% increase on the previous year. survey LendingTree. LendingTree.

Even though there were no lockdowns or public health mandates, the global economy still has not performed well. Analysts believe that this year will be a good one. see a recession In the United States, this would be a reality. worst stock market Some are more optimistic than others, despite the poor performances of modern history. Michael Hartnett, Bank of America Chief Investment Strategist, said in a report Before markets achieve a recovery, a recession is likely to occur in the first quarter of the year. “much more solid footing,” While you are at outlook Jan Hatzius, Goldman Sachs Chief Economics Officer, stated that Goldman Sachs analysts believe the following: “there are strong reasons to expect positive growth in coming quarters.”