It looks like it’s going to be both a green and a blue Christmas.
The CNBC All-America Economic Survey finds American views on the economy in a continued slump, echoed in increasingly negative views on President Joe Biden’s job approval, and yet holiday spending plans are buoyant.
The survey shows intended holiday spending per person rocketed up to $1,300 this year, 31% above last year. While the number was driven by a small number of respondents saying they will spend large sums, the gains still amount to double digits when those answers are removed. What’s more, 18% say they will spend more, up from just 11% last year and the highest since 2019. Among those spending more, 32% say it’s because they are being paid more or have higher incomes, up 2 points from last year; 24% say it’s because of inflation, down 6 points.
Meanwhile, among those spending less this year, 37% say it’s because of inflation, up from 15% last year.
The survey underscores the increasing divide between dour American economic sentiment and upbeat economic data. Multiple surveys have found downbeat economic views but data showing robust consumer spending. Recent reports show surging third quarter growth, a low unemployment rate and strong holiday spending.
The CNBC Survey found modest improvements in views on the economy, but they remain mostly depressed. 80% view the economy as just fair or poor, down three points from the October survey, and 19% say it’s excellent or good, up three points. But those levels are heavily depressed from the pre-pandemic levels in December 2019 when 53% of the public said the economy was good or excellent.
The outlook also improved a bit, with 24% of the public saying they expect the economy to improve, up from 19% in October, but still down from 30% in 2019. For the full year, the 66% percent of Americans who are negative about the current state of the economy and the outlook represents an all-time high in the 17 years of the…
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