Ohioans are expected to spend more this holiday season than last year.
The University of Cincinnati Economics Center predicts that spending will climb 3.1% to $32 billion in the state. The group studies nine metropolitan regions in Ohio each year for the Ohio Council of Retail Merchants, with spending expected to grow in six of them this year.
Researchers cited slightly higher employment, and wages and salaries increasing by 4.8% between 2024 and 2025 as reasons.
“Sales are expected to be strong despite multiple surveys showing weakening consumer confidence,” the study says.
The Akron and Mansfield areas will see lower holiday sales, while the Toledo area is forecasted to remain about the same. Spending is predicted to increase in Cleveland, Cincinnati, Columbus, Dayton, Lima and Youngstown areas.
The study did not include Canton.
The Ohio study is similar to the National Retail Federation’s annual holiday forecast, which predicted retail sales in November and December will grow between 3.7% and 4.2% over the previous year. The Washington, D.C.-based trade group estimated that total spending will be between $1.01 trillion and $1.02 trillion. Last year’s holiday sales rose 4.3% over 2023 to reach $976.1 billion, it said.
“American consumers may be cautious in sentiment, yet remain fundamentally strong and continue to drive U.S. economic activity,” National Retail Federation President and CEO Matthew Shay said in a prepared statement. “We remain bullish about the holiday shopping season and expect that consumers will continue to seek savings in nonessential categories to be able to spend on gifts for loved ones.”
Meanwhile, the National Retail Federation’s latest holiday survey found that consumers plan to spend an average of $890.49 per person this year on holiday gifts, food, decorations and other seasonal items. The amount is the second highest in the survey’s 23-year history, behind only last year’s $902.
More than half of consumers (55%) plan to make purchases online, the organization said. As for the top gifts that people want to receive? Gift cards topped the survey at 50%, followed by clothing or accessories (46%), books and other media (27%), personal care or beauty items (23%) and electronics (22%).
“Time and again, Americans prioritize spending on loved ones for holidays despite economic uncertainty,” National Retail Federation Vice President of Industry and Consumer Insights Katherine Cullen said in a prepared statement. “With more consumers planning to seek out sale events this year, retailers are prepared to deliver on deals and value to ensure consumers have everything they need to make the holiday special.”
This article originally appeared on The Repository: Holiday spending predicted to go up 3.1% in Ohio this year
Reporting by Canton Repository / The Repository
USA TODAY Network via Reuters Connect
