Holiday spending expected to increase

A national survey shows this holiday season, the average person will spend $1,189 this year on gifts.

If you're making $100,000-$149,999, you'll be spending 15 percent more, each person spending $1,609.

People earning less than $25,000 will cut their holiday spending by three percent, to $640.

If you make more than $150,000, you’ll spend about eight percent more-an estimated $1,958.

But, Houstonians could be hindered because of financial woes after dealing with Harvey.

Since Harvey, your present might be a new appliance or carpet, or even painted walls. Greater Houston Partnership senior vice-president of research Economist Patrick Jankowski says needs come before wants, and gifts might be coming in different and nontraditional packages.

“What I suspect that we’re going to see over the next few months is an increase in utilitarian type purchases. Things that would be the basic need in the household of a family. And, we may see a deferral of some of the nicer items,” said Jankowski.

There will be some luxury items bought, otherwise, it would be a dull holiday.

Economists say they will see a growth in retail sales in the fourth quarter in Houston. But will it be a bump or a jump? And, will it be due to Harvey purchases or holiday presents.

Jankowski says income, outlook towards economy and need will drive retail sales. People’s incomes improved the first quarter of the year. We’ve had a robust stock market, with no sign of recession. There's definitely a need following Harvey.

Jankowski says 30 percent of households make more than $100,000 a year.

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