COLLEGE STATION, Texas (KBTX) – U.S. credit card balances rose during the third quarter, and now total $1.23 trillion outstanding and are above the level a year ago.
That, along with tariffs and inflation, may be the reason some consumers are spending less this holiday season, according to Cody Moore, who helps manage people’s money.
“I think the volatility that [tariffs] created in the market this year has left Americans just a little bit more timid and curious, and maybe uncertain for where we’re headed, into the new year, [in terms of] how the economy is going to be,” Moore explained.
According to the University of Michigan’s Consumer Sentiment Index, the average U.S. citizen is less confident in the economy and stock market.
“[Confidence] has come down [to] about the 50’s for this month, and just a few months ago, it was up into the 70s,” Moore mentioned.
Jade Anderson was out shopping on Friday after saving up for the holidays. She says she has definitely felt the increase in prices.
“I think prices have always been increasing, but I’ve kind of planned it ahead,” Anderson noted. “I’ve kind of been putting money away all year so I can splurge on my whole family.”
Price changes have impacted plenty of businesses in recent months, including College Station based Sabi Boutique. Sabi owner, Meredith McAuliffe, said despite that, they’re still looking forward to a strong holiday shopping season.
“We definitely have seen price increases because of tariffs, and I would assume every other business has seen that too. We adjust, but we try our hardest for it not to impact our customers,” McAuliffe added.
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