It will be a Christmas with fewer gifts. According to estimates by the CGIA of Mestre, this year Italians will spend 9% less than last year. The lower economic availability of families, due to inflation, weighs heavily. Mandatory expenses (food, petrol and bills) erode more than half of salaries, which in recent years have not grown at the same rate as inflation.
The expected spending for the Christmas holidays is expected to go from 11 billion euros in 2023 to 10 billion estimated for 2024, marking a contraction of 1 billion euros. The growing incidence of obligatory expenses drains 56% of the monthly budget. According to the Mestre CGIA report, Italian families spend on average 1,191 euros per month on essential expenses, with marked differences between North and South: 2,337 euros in the North-West compared to 1,758 euros in the South. However, it is in the South that the incidence of obligatory expenditure reaches almost 60%, further reducing resources for gifts and discretionary consumption.
The reduction in spending capacity depends on families’ disposable income eroded by years of inflation and salaries that do not keep pace with rising prices. This has led many to save to meet unexpected expenses, limiting outgoings for Christmas gifts and entertainment. The rising cost of living has transformed Italians’ spending priorities. The average monthly outlay for food, equal to 526 euros, represents the main item, followed by bills and household expenses (374 euros) and transport (291 euros). As a result, there is little room left for discretionary spending.
Then there is a change in habits. Christmas shopping has already started for six out of ten Italians (Coldiretti analysis) who are taking advantage of the November discounts on Black Friday and Cyber Monday. This dynamic has contributed to shifting consumption, leaving the coffers of Christmas retailers emptier than in the past.
The decline in Christmas spending also has repercussions on the local economy. Small artisan and commercial businesses, which traditionally depend on end-of-year consumption, are feeling the effects of the decrease in demand. Confcommercio reports a contraction in sales volumes, confirming the negative trend. The reduction in the purchasing power of families does not only have an impact on the Christmas period, but means a decrease in consumption, with long-term effects on the general national economy.
