Holiday spending expected to be lower this year

(CNN) - It looks like Americans will not be going crazy with holiday gifting this year.

A new forecast from consulting firm Deloitte expects retail sales for the gift-buying months of November, December and January to increase by 4 to 6%.

That’s modest compared to the robust 15.1% increase for the same timeframe last year.

This year’s expected slower growth is in line with where holiday retail sales were trending before the pandemic.

Higher costs for everyday items and services due to inflation is a big reason for the lower projection.

Gifting categories that are still expected to do well this year are clothing, toys and gift cards.

Separately, the firm expects online holiday spending this season to outpace last year’s growth.

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