Minneapolis residents are ready to spend more this holiday season, according to a recent survey by London-based consulting firm Deloitte.

In a survey of 440 consumers in and around Minneapolis in August and September, respondents said they expected to increase their holiday spending by about 15% this year compared to last. The firm’s surveys from 2022 and 2023 showed Minnesotans spending about $1,493 in the holiday season, but the 2024 iteration has Minnesotans spending $1,718 for the season.

“I wasn’t anticipating this big of a jump this year,” said Matt Marsh, Minneapolis managing partner for Deloitte.

Nationwide, Americans expect to spend about 8% more on holiday shopping, according to Deloitte.

Whether that’s due to inflation or consumer optimism is up for debate. Over the weekend, the Associated Press reported that prices on average are about 19% higher than they were before inflation started to tick up in 2021.

Deloitte’s survey concluded that the increase in expected spending is “attributed to a rosier economic outlook, perceived higher prices, and an increase in spend by the $100K to $199K income group.”

Marsh noted that Deloitte’s annual survey didn’t ask consumers about inflation specifically. But he believes that people seem to be getting used to higher prices.

He said Minneapolis’s economy is reliant. About 42% of respondents in the Minneapolis survey said they expected the economy to improve next year.

Marsh said that businesses can expect to have a good holiday shopping season.

The survey also found that consumers are shifting their focus from spending money on gifts. Continuing a longer-term trend, survey respondents said they plan to spend more on experiences, like traveling, and holiday party preparations.

In 2023, the average amount spent on experiences was $636 whereas the predicted rate for 2024 is $709.

The survey indicated the two highest categories people are spending their money on is electronics, which increased 50% from last year, and clothing, increasing nearly 12% from the previous year.

Meanwhile, consumers appear ready to buy both in physical stores and online. Marsh said the ease of online shopping has led many consumers to choose digital purchases over the years.

“That has driven a lot of behavior, but in-person holiday shopping is still a thing,” Marsh said. “Shopping is a social activity that people want to go do in person.”

According to the survey, 47% of consumers plan to shop on their phones while 9% plan to purchase gifts through social media.

“Retailers are trying to extend the holiday shopping season, so you see a lot more deals as they try to spread it out more,” Marsh said.