(Bloomberg) — Consumers’ holiday spending intentions are slightly lower than in 2020, partly reflecting higher prices and supply chain challenges, the Conference Board said Wednesday.

On average, consumers intend to spend $648 on gifts this holiday season, according to the group’s survey. Although budgets have dropped from $673 last holiday season, they are still very high.

Expect to spend $374 on other holiday gifts such as decorations, food and wrapping paper. This may account for the drop in gift-spending as more people turn towards social activities. 60% of respondents expect to spend more this holiday season on food and gifts. 

“These spending intentions may be thwarted by severe supply-chain challenges and transportation issues,” said Lynn Franco, senior director of economic indicators at The Conference Board. “If these problems persist, Americans may face bare shelves that send more shoppers back online, and could also mean delays in receiving products purchased in time for the holidays.”

The Board’s survey found that gift cards are expected to have the biggest spending increase this year. It is possible that gift-givers are trying to prevent supply chain chaoses in the lead up to Christmas.

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