Rising inflation and interest rate hikes are expected to take a toll on holiday shopping in Washtenaw County and across the country. But that doesn’t mean people are spending any less.
According to Mark Lee from Eastern Michigan University’s business college, this is turning out to be a challenging holiday season for both consumers and retailers.
Consumers are expected to be spending about the same amount in holiday gifts overall as they did last year. But with inflation, they’re being forced to be more prudent in their spending and on the amount they spend per item.
"So, as opposed to giving that 62-inch flat screen tv, it might be a smaller version. As opposed to giving the latest iPhone, it might not be the latest iPhone."
And those decisions, Lee says, will make it a more challenging year for retailers. And the fed's interest rate hikes, he says, that will have the same effect.
Consumers will still be spending, but downsizing their buying plans for big ticket credit items like cars, houses and major purchases that they put on credit.
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