Labor Day spending expected to be similar to 2024

As summer winds down, the Labor Day weekend holiday is often celebrated by families with barbecue grilling and plenty of beverages. Marketing firm Numerator reports 64% of U.S. consumers plan to celebrate Labor Day (Sept. 1) this year.

Average spending is pegged at $100 or less, with Generation X consumers between 45 and 60 years of age registering as the biggest spenders. Average spending is on par with a year ago, according to Numerator. The survey found 28% plan to spend more than $100 and 10% plan to spend more than $200 on the weekend festivities. One in three consumers aged 44 years and below plan to spend less than $50 for their festivities. Those aged 60 and above plan to spend more, with 62% earmarking between $100 and $199 for their Labor Day celebrations.

The survey also found grilling as a likely activity by 57% of the respondents. Just as many respondents said they plan to gather with friends and family, and 30% are cooking at home. Food prices remain elevated, with the food index reported by the Bureau of Labor Statistics rising 2.9% in July.

The U.S. Department of Agriculture (USDA) reports that advertised retail beef prices this week are split, with boneless ribeye steak averaging $10.44 per pound, down from $10.93 a year ago because of retailer promotions. Brisket prices averaged $5.03 per pound this week, up 7.72% from last week and 25% more expensive than a year ago. Ground chuck for burgers averaged $4.16 per pound, up from $4.06 last week, but 8.97% cheaper than last year.

Boneless chicken breast prices ranged from $4.64 per pound, while drumsticks averaged $1.17 per pound. Wings rang up at $3.84 per pound and chicken thighs averaged $1.58 per pound. Prices are up year over year, with leg prices 7.3% higher and boneless breast prices up 4.9%, but wing prices are down 25% from a year ago, according to USDA data.

Younger consumers said they are more likely to go out to eat. BLS reported restaurant food prices were 3.9% higher than a year ago in July. That is on top of the 4.1% increase reported in July 2024 and 7.1% increase for restaurant food in July 2023. Numerator found roughly 19% of consumers under 44 plan to eat out during the Labor Day weekend.

The most popular beverages for the holiday weekend are beer and spirit-based drinks among 74% of the respondents. Adult beverage prices are also higher than a year ago. The average cost for a case of beer in Arkansas in the summer of 2024 was $19.44 before tax. That same case will cost consumers about $22.50 this Labor Day, up 15.7% from a year ago, according to AmericanCraftBeer.com. Spirit-based drinks are also a bit more pricey, rising 3% in July.

Travel is also a big part of the Labor Day festivities despite 65% saying they will stick close to home. Numerator found 26% plan to fly, and 16% will drive up to 3 hours for their celebrations. AAA expects 3.1 million passengers will travel by air over the six days, with the daily average being more than 550,000 passengers during the peak travel period between Friday, Aug. 29, through Monday, Sept. 1.

Online travel portal Points Path looked at more than 100,000 flights with economy seat prices over the four-day Labor Day weekend. They report average fares for domestic flights over the long weekend were down 7.44% from 2024, down to around $408 versus $440 last year.

Hotel lodging costs were 4.8% lower in July than a year ago, according to BLS data. Consumers traveling by car will pay less for gasoline, with prices down roughly 9.5% from a year ago, ahead of the holiday weekend.