MNI DATA IMPACT:US Holiday Spending Plans Resilient Amid Covid

U.S. consumers enter the holiday season with spending intentions mirroring those of last year despite Covid-19 restrictions and the highest unemployment in a decade, according to data published Friday by the Conference Board.

Households surveyed by the New York-based research organization indicated plans to spend an average of USD673 on holiday gifts, on par with last year's USD675 when unemployment had plummeted to a 50-year low.

Still-surging Covid-19 case counts and hospitalization rates across the country have curbed foot traffic to traditional brick-and-mortar retailers, but e-commerce should help bolster sales in the coming months even as more consumers opt to stay home.

About 52% of consumers in the Conference Board's survey, conducted with marketing research firm Nielsen, said they planned to make at least half of their holiday purchases online compared with 42% in 2019.

ONLINE SPENDING SURGE

"With COVID-19 cases continuing to rise, retailers should prepare for a surge in online traffic and purchases," the board's senior director of economic indicators Lynn Franco said in a statement.

"Consumers are entering the holidays with intentions to spend about the same as last year. That is relatively good news at a time when consumer confidence remains below pre-pandemic levels, unemployment is elevated, and the economy appears to be losing momentum."

The Conference Board's measure of consumer confidence retreated in October, falling to 100.9 from 101.3 in September. The Expectations Index based on consumers' short-term outlook for personal income, business, and labor market conditions, fell to 98.4 in October from 102.9 in September.