‘Tis the season to go spending, and WalletHub calculates the maximum holiday household budget for Portland at $1,094.
The calculation, part of a report out this week by the personal finance website, is based on factors including income, age and the ratio of monthly savings to monthly expenses.
Out of a total of 570 U.S. cities, Palo Alto, Calif., topped the list with the highest maximum holiday budget, of $3,160.
At the other end of the spectrum, Providence, R.I., was found to have the lowest maximum budget amount, of $111.
Researchers say they undertook the exercise, in part, to help consumers avoid post-holiday spending regret, as they project a $70 billion jump this year in total credit card debt.
That number currently stands at more than $1 trillion, with the average household debt amount at $8,602. Portland was the only Maine city in the ranking.
Retail industry projections
The National Retail Federation expects retail sales in November and December — excluding car dealers, gas stations and restaurants — to increase between 3.8% and 4.2% over 2018.
Total spending is expected to reach between $727.9 billion and $730.7 billion.
The group notes that holiday sales represent about 20% or more of annual sales for retailers, and can be more profitable because the purchases generate higher volume but without significantly increasing retailers’ fixed costs of doing business.
Curtis Picard, president and CEO of the Augusta-based Retail Association of Maine, told Mainebiz he’s “cautiously optimistic” about this year’s holiday retail season.
“Although though there are still signs of a strong economy, the political uncertainty continues and we are unsure if that will impact consumer spending and attitude,” he said via email from a conference in California. “The tariffs are a factor for retailers and it either means retailers invested in inventory earlier to avoid increased tariffs or pay higher prices for items.”
His other caution is Maine’s weather.
“A poorly timed storm on Black Friday or the weekend before Christmas can have a huge impact on brick-and-mortar retailers,” he said.
And the word from Mainebiz readers
Mainebiz readers responding to an online poll offer a somewhat merrier holiday season outlook for Maine businesses.
Out of 21 votes cast by Thursday morning, 57% predict a better than average season, 38% foresee a mixed bag of gifts and only 5% say this year will be worse than average. In other words, this season may be more Santa than Grinch.