Americans are expected to spend big as they go all red, white and blue for the Fourth of July holiday weekend, according to the National Retail Federation's (NRF) "2015 Independence Day Survey" conducted by Prosper Insights & Analytics.
According to NRF, more than 64 percent of consumers (156 million total) will be taking part in July 4 activities such as attending cookouts or picnics this year. They'll spend an average of $71.23 per household, up from $68.16 last year. Total spending for food and drinks for the holiday will reach $6.6 billion.
As for other holiday activities:
- Forty-three percent will watch fireworks or attend other community events;
- Twelve percent will go to a parade;
- Nine percent will travel or go on vacation.
Sales are expected to benefit from lower gas prices as 78 percent say it will not impact their spending for the holiday. Last year, 70 percent said they wouldn't let high gas prices get in their way.
Sources: Sears, Gap, Macy's
"Consumers this summer and for the 4th of July will take advantage of lower gas prices to head to the beach or get together with family — something they've had to think long and hard about in recent years with higher energy costs and limited budgets," said Pam Goodfellow, consumer insights director at Prosper Insights, in a statement.
The good news for retailers shouldn't end this weekend, according to NRF president and CEO Matthew Shay.
"The busiest half of the year for retailers is about to begin, and with economic conditions swaying in consumers' favor more so this year than last, many seem eager to take advantage of retailers' promotions," he said.
The Conference Board's Consumer Confidence Index increased 6.8 points to 101.4 in June providing more fodder for optimism.
In an e-mail to reporters, Chris G. Christopher, Jr., director of consumer markets at IHS Global Insight, wrote, "This is a good report. Elevated levels of consumer confidence are likely to assist back-to-school spending in the upcoming months. The back-to-school season is the second most important shopping season for many retailers, and provides an indication of how much consumers are willing to open their wallets for the crucial holiday season that follows."