Americans are planning on spending way more this holiday season that in the past few years.
A November survey by Gallup found that US adults are planning on spending about $830 on average on Christmas gifts this year — a huge jump from last year’s $720 average.
But what exactly is that money going to?
In a note to clients, a Macquarie Research team led by Laurent Vasilescu shared a chart showing the breakdown of holiday expenditures.
Typical celebratory fanfare like decorations, greeting cards, and candy and food all together adds up to only about 25%.
Meanwhile, over “50% of the expenditures go to gifts for family which consists mostly of apparel, footwear and accessories,” the analysts wrote. “We note that according to the National Retail Federation these percentages remain relatively fixed year after year.”
Notably, all of this could be a positive sign for retail. And November’s solid retail sales report, which purportedly gives an early read on the holiday shopping season, seems to suggest the same. Sales rose 0.2%, the biggest increase since July, suggesting that consumer spending remains a strong contributor to economic growth.
In any case, check out the chart below.