For their Fourth of July barbeques this year, Americans are going to have to dig a little deeper into their wallets at the supermarket according to new data from a key retail trade association.
What You Need To Know
- The National Retail Federation surveyed over 8,200 consumers in June, 87% of whom said they planned to celebrate the holiday and expected to spend an average of $93.34 per person. And that’s just food alone
- In total, the group expects Americans to spend a record $9.5 billion on food this holiday weekend, up from $7.7 billion last year
- AAA estimates a record 50.7 million Americans will travel 50 miles or more this weekend, up 2.1 million from 2022. But for those heading out of town, the price at the pump has dropped an average of $1.32 since last Fourth of July to $3.54 a gallon this year
The National Retail Federation surveyed over 8,200 consumers in June, 87% of whom said they planned to celebrate the holiday and expected to spend an average of $93.34 per person. And that’s just food alone. Fireworks and decorations are going to cost you even more.
Just last year, the survey found that people expected to spend $84.12 per person. The increase of nearly 11% between 2022 and 2023 is almost double the rate of inflation for food prices over the last year.
In total, the federation expects Americans to spend a record $9.5 billion on food this holiday weekend, up from $7.7 billion last year.
According to a Wells Fargo analysis of U.S. Bureau of Labor Statistics data, beef prices are up less than 1% compared to last year, averaging $5.36 per pound. Pork chops saw a similar increase, rising 1% to an average of $4.19 per pound. And sirloin steaks rose 2.9% to 10.75 per pound But chicken per pound prices dropped almost 2% to $4.24.
Unfortunately, beer and soft drinks have jumped 8% and 14% since last year to an average of $1.75 and 54 cents respectively, Wells Fargo reported.
“Food retailers and consumers should expect a busy and robust celebration for this year’s Fourth of July, even with higher prices,” wrote Michael Swanson, Wells Fargo’s chief agricultural economist. “Job growth and wage improvements will have most ready to celebrate by lighting the grill and chilling with their favorite snacks, foods, and beverages.”
The U.S. economy added an average of 341,000 jobs per month between May 2022 and May 2023, according to the Bureau of Labor Statistics. Wages climbed 5% between March 2022 and March 2023, the bureau reported.
The National Retail Federation survey also found 32% of respondents planned on purchasing “additional patriotic items.”
Celebrations Americans have planned include a barbeque or picnic (65%), fireworks or a community celebration (42%), traveling (14%) and attending a parade (13%), according to the retail survey. Not every American plans to mark Independence Day: 13% said they will not celebrate, down from a 14-year high of 24% in 2020, when the COVID-19 pandemic was raging.
For travelers, there is some good news. AAA estimates a record 50.7 million Americans will travel 50 miles or more this weekend, up 2.1 million from 2022. But for those heading out of town, the price at the pump has dropped an average of $1.32 since last Fourth of July to $3.54 a gallon this year.
The ten states with the cheapest gas price averages this weekend are Mississippi ($2.97), Louisiana ($3.08), Alabama ($3.10), Tennessee ($3.10), Arkansas ($3.11), South Carolina ($3.17), Texas ($3.18), Oklahoma ($3.22), Georgia ($3.23) and North Carolina ($3.25), according to AAA.
“We’ve never projected travel numbers this high for Independence Day weekend,” said Paula Twidale, AAA Travel’s senior vice president, in a statement. “What this tells us is that despite inventory being limited and some prices 50% higher, consumers are not cutting back on travel this summer.”
