American Express: Consumers Plan to Spend Much More
It looks as if many Americans are becoming more responsible consumers. American Express Co.’s (NYSE:AXP) Spending and Saving Tracker predicts that while spending will be up 17% this holiday season, fewer people will be dipping into savings or charging holiday spending to their credit cards.
MarketWatch quotes American Express Co.’s (NYSE:AXP) executive Pam Codispoti who says, “Consumers are savvier than ever, and they have memorized the holiday retail narrative. We’re continuing to see consumers employ a range of tactics to stay within budget and, at the same time, maximize their gift-giving potential.”
The American Express Co.’s (NYSE:AXP) survey found that people are planning to spend on average $831 on holiday gifts this year in comparison to $710 last year. Only 12% of consumers polled said that they would be using their savings to fit the bill this year, down from 18% in 2010. In the same trend, 29% of those surveyed planned to carry their holiday balance on their credit card verses 33% last year.