Father's Day spending set to rise this year

Sure, Mother's Day sales are way higher, but an improving economy means dad may get feted a bit better in 2013.

By Bruce Kennedy May 31, 2013 8:54AM

Adult with elderly parent (© Digital Vision/SuperStock)Gift-giving alert: Father's Day is coming up fast, on June 16 to be exact. And while American consumers on average spend about 30% more on Mother's Day than Father's Day, it looks they're willing to shell out a bit more this year for dear old dad, thanks to a strengthening economy.

Research firm IBISWorld says it expects overall spending for Father's Day 2013 to reach $13.2 billion, up 2.1% compared to 2012. It says the increase is "mainly due to the overall rise in consumer spending during the past year." Mother's Day spending also showed a slight bounce this year, up about 0.2% compared with a year earlier to total $17.1 billion.

Taking dad out to dinner or a sporting event should make up the king's portion of Father's Day outlays this year at 18.8% of total holiday sales, up 3.5% from 2012.

And with consumers having a little more discretionary income, IBISWorld says old-school Father's Day gifts, like the traditional tie or something for dad's car, are being overtaken by things like home-improvement tools, which are projected to see a 2.7% increase in sales for 2013.

In fact, according to IBIS, Father's Day sales of electronics like an Apple (AAPL) iPad are up more than 3% this year compared to 2012, while automotive accessories are down 3.4%.

Another holiday standby, greeting cards, are likely to see a 9% jump in sales from 2012. But overall they account for just 6.9% of total holiday spending. "Higher disposable incomes will leader consumers to be more inclined to buy a card and a present for dad," says the report, "instead of just one or the other."

Another much-favored, last-minute gift for the dad who might have everything is the gift card, whose sales are expected to remain the same as last year, accounting for about $1.73 billion.

More on moneyNOW

May 31, 2013 9:21AM
Uh, consumer spending dropped in April, pointing to an economic slowdown.  At least that what another MSN Money article is reporting.  Hey Bruce, you and your cohorts need to have a few more meetings so you can get your stories straight.
"And with consumers having a little more discretionary income," sorry not here still struggle for needs and not wants.
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