Consumers are spending on physical gifts even as travel tops wish lists, Visa survey finds

Live updates

1. 17m ago

   Visa Survey Shows Consumers Favor Physical Gifts

   U.S. holiday retail sales are projected to grow by 4.5% from a year earlier, marking the strongest growth pace since 2021, according to Visa economists. Visa forecasts total sales to rise, though economists note that much of the growth reflects higher prices rather than increased purchasing volume. Economic confidence has slipped heading into the holidays, and a separate survey reveals that 65% of consumers plan to cut spending on necessities to afford gifts. Meanwhile, Bank of America reports that late holiday shopping will surpass early holiday shopping.

   Why it matters

   Despite economic pressures and a slip in consumer confidence, holiday retail sales are projected to top $1 trillion for the first time. Shoppers continue to prioritize celebrating the holiday season even as broader financial strains force adjustments to household budgets. Visa data shows that while travel and live experiences top wish lists, consumers are spending on physical gifts instead.

   What is confirmed

   • Visa forecasts U.S. holiday retail sales to rise 4.5% in November and December compared to the previous year.
   • Visa economists report that the projected 4.5% growth rate is the fastest pace since 2021.
   • A Visa survey released on Thursday shows that consumers favor physical gifts over travel and live events.
   • Circana finds that economic confidence has slipped ahead of the holidays while consumers remain determined to celebrate.
   • Bank of America finds that late holiday shopping will surpass early holiday shopping.

   Still unconfirmed

   • 65% of people plan to reduce spending on necessities to afford holiday gifts.

   What to watch next

   • Updates on actual retail sales figures as the holiday shopping season progresses
   • Further data on whether late shopping outpaces early shopping patterns as predicted
   Sources used for this update (12)

   1. CNBC — Consumers are spending on physical gifts even as travel tops wish lists, Visa survey finds
   2. Circana — Economic Confidence Slips Ahead of the Holidays, but Consumers Remain Determined to Celebrate, Circana Finds
   3. U.S. News - Money — Survey: 65% Plan to Reduce Spending on Necessities to Afford Gifts | Credit Cards
   4. ATM Marketplace — Bank of America finds late shopping will surpass early holiday shopping
   5. Yahoo Finance — Visa Forecasts U.S. Holiday Spending to Rise 4.5% as Consumers Keep the Holidays a Priority
   6. AZ FREE NEWS — U.S. Holiday Retail Sales Projected To Top $1 Trillion For First Time
   7. National Retail Federation | NRF — How holiday shoppers plan to manage costs
   8. Yahoo Finance — Visa sees US holiday retail sales growing 4.5%, fastest pace since 2021
   9. www.cnbc.com — Visa: Holiday shoppers favor physical gifts over travel - CNBC
   10. corporate.visa.com — Visa Forecasts U.S. Holiday Spending to Rise 4.5% | Visa
   11. www.baltimoresun.com — Americans to spend more on holiday gifts as travel costs rise ...
   12. www.gate.com — Visa Survey: Consumers Favor Physical Gifts Despite Travel ...
   confidence 100%