Halloween spending expected to decline

Washington, D.C. A Halloween spending survey released Tuesday by the National Retail Federation found that consumer spending for the holiday is expected to drop in response to the tightened economy.

According to the 2009 Halloween Consumer Intentions and Actions Survey, conducted by BIGresearch, consumers are expected to spend an average of $56.31 on Halloween, down from $66.54 last year.

Total spending on the holiday is expected to reach $4.75 billion.

Other key findings include: 29.6% of consumers say the state of the U.S. economy will impact their Halloween spending plans. Of those who will be affected, 88.0% plan to spend less overall. Others say they will be buying less candy (46.5%), using last year’s decorations without buying new ones (35.4%), making costumes instead of purchasing them (16.8%), reusing last year’s costumes (15.8%), and not participating in as many Halloween activities such as haunted houses or fall festivals (26.4%).

“The economy has caught up to Halloween this year,” said Tracy Mullin, president and CEO, National Retail Federation. “Since retailers know that Americans will be looking to celebrate on a budget, there’s no doubt we will see creative costume and decorating ideas in every price point imaginable.” 

Young adults, who were last year’s big spenders for Halloween, plan to scale back dramatically this year. According to the survey, the average 18-24 year-old will spend $68.56 on the holiday, compared with $86.59 last year and $81.91 in 2007. 

The survey found consumers plan to spend an average of $20.75 on costumes, $17.99 on candy, $14.54 on decorations and $3.02 on greeting cards.