MNI DATA IMPACT:1/3 US Shoppers to Cut Holiday Spending:Gallup

Americans are more likely to spend less this holiday season compared to last year if another round of federal stimulus checks aren't sent out before the end of the year, according to data published Thursday by public opinion research group Gallup.

Roughly 37% of the 5,000 Americans surveyed by Gallup between Oct. 1 and Oct. 9 said they are more likely to spend less this holiday season than last year in the absence of more stimulus. That number dropped to 30% when respondents were asked to assume they would receive another check from the government.

A one-time payment of USD1,200 was sent to U.S. adults as part of the CARES Act signed by President Donald Trump in March. Those funds were mostly put into savings or used to pay off outstanding debts or for basic necessities, research has found.

About 16% of survey respondents said they are still likely to spend more on gifts this year even without more stimulus, and 22% said they're likely to spend more this year if more stimulus is coming.

About 47% said they planned to spend about the same as last year, in line with data from the Conference Board late last month.

Americans reporting financial difficulties were much more likely to indicate plans to spend less this holiday season, according to the Gallup survey, with 42% of respondents that are "having to draw on savings" or "running into debt" likely to spend "much less" compared to last year without new government support. That figure shrinks to 33% in the event of another payment.

Spending Up Among Most Pessimistic

Additional federal stimulus should boost spending among Americans who believe the nation's Covid-19 outbreak is getting worse, according to the survey, with 69% saying they will spend less than last holiday season without more stimulus. About 57% said they would spend less even with more money coming.

Roughly 53% of Americans believe the U.S.'s coronavirus outbreak is worsening, according to Gallup, while 25% believe it is staying the same and another 22% say it is improving.