Americans estimate they’ll spend an average of $975 on holiday gifts this season, an increase of over $100 from last year that’s driven by middle-income households, according to Gallup.
The major polling group on Wednesday said the expected outlays for Christmas gifts are far above the $867 that Americans cited last year.
Gallup says the trend runs contrary to general pessimism about the economy and sluggish overall spending in October.
“The latest reading is a positive sign for retailers who may be counting on brisk holiday sales to make up for anemic receipts seen at the start of the fourth quarter,” the pollsters said.
Gallup said two trends might be fueling the uptick. Some Americans are holding “significant, albeit dwindling” excess savings and feel confident about splashing some cash.
Also, “the increase could reflect consumer interest in retailer promotions that kicked off ahead of Black Friday — a day that, by some accounts, showed strong year-over-year growth in sales,” Gallup said.
Roughly nine in 10 Americans plan to partake in holiday shopping to some degree, and 58% plan to spend at least $500 on gifts.
Middle-income households with annual incomes between $40,000 and $99,999 plan to spend an average of $947 this Christmas season, an increase of $200 from last year.
Middle-aged adults are the biggest spenders, at $1,111, because they probably have children under age 18, according to Gallup.