American consumers plan to tighten holiday budgets this year, according to PwC’s 2025 Holiday Outlook survey. Overall spending is expected to decline 5% compared to 2024, marking the first drop since 2020.
Gen Z shoppers, ages 17 to 28, will cut their budgets the most, slashing holiday spending by 23%. PwC found that one in four Gen Z respondents said their financial situation has worsened since last year. Analysts point to both rising living costs and unmet expectations from retailers.
US holiday spending set for steepest drop since pandemic https://t.co/Sv9btrmIwc
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Despite frugal intentions, Americans still plan to spend significant amounts: Millennials will average $2,190, Gen X $1,483, Gen Z $1,357, and Baby Boomers $1,180. Gift cards, toys, apparel, and food remain top choices.
The survey also found that consumers will shop earlier, with most purchases completed by Cyber Monday. Shoppers are expected to split buying habits evenly between online and in-store.
