Father’s Day Spending Projected to Slide as Consumers Cut Back

As with Mother’s Day last month, consumers have a little less to spend on Dad for Father’s Day this year.

Last year saw Americans spend record amounts for both holidays, but this year, Father’s Day spending is expected to dip a bit, the National Retail Federation (NRF) said Monday (June 3).

Father’s Day spending is projected to reach $22.4 billion this year, according to a yearly survey by the NRF and Prosper Insights & Analytics. It is the second-highest figure in the survey’s history, following last year’s record of $22.9 billion.

This follows the Mother’s Day survey released in April projecting $33.5 billion in spending, compared to a record $35.7 billion in 2023.

According to the Father’s Day survey, half of consumers plan to purchase a gift for a father or stepfather, followed by those purchasing gifts for husbands (26%), sons (10%), brothers (8%), friends (8%) or grandfathers (6%).

In all, 75% of consumers say they will celebrate Father’s Day this month. Shoppers for the holiday plan to spend an average $189.81 on gifts and celebrations, down from last year’s record of $196.23, the survey showed.

This year has seen higher inflation and interest rates dampen both consumer and business spending, Brian Moynihan, CEO of Bank of America, said at a conference last week.

“Both of our customer bases that have a lot to do with how the American economy runs are saying, ‘You know what? I’m being careful, slowing things down,’” Moynihan said, referring to consumers and businesses, according to a CNBC report.

As PYMNTS wrote, the CEO’s comments are in line with recent data from the Bureau of Economic Analysis, which also indicated that consumers are dialing back their spending.

The bureau’s announcement last week noted a “downward revision” for consumer spending. Personal consumption still increased, but at 2%, from the initial 2.5% reading.

The bureau also found that prices continued to climb, as the personal consumption expenditures price index rose 3.4% in the first quarter, compared with an increase of 1.8% in the fourth quarter.

Retailers have begun taking notice of consumer pullback, with Target and Walmart last month announcing price cuts across household staples in a bid to capture market share as consumers increasingly look for deals to stretch their dollars.

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