"Some 84% of Americans expect to cut back over the next six months, particularly when it comes to eating out (52%), clothes (36%), and big-ticket items (32%)-as a result of rising prices and tariffs (especially on electronics, apparel, toys, food, and household staples)-and the overall high cost of living. More than half of those surveyed said increased prices likely affect what they decide to purchase, making value a defining theme of the 2025 holiday season."
"Gift spending is expected to take the biggest hit, down 11% to an average of $721 from $814 in 2024 - while people continue to spend on travel and entertainment, at an increase of 1%. PwC expects the sharpest decline in shopping to come from Gen Z, who say they expect to reduce their holiday spending by a whopping 23%, leaving retailers to compete over less dollars."
PricewaterhouseCoopers polled about 4,000 consumers nationwide between June and July for its 2025 Holiday Outlook and found expected per-person holiday spending down 5.3% to about $1,552. Gift spending is projected to fall 11% to an average of $721, while travel and entertainment spending may rise about 1%. Eighty-four percent of Americans anticipate cutting back over six months, especially on eating out, clothing, and big-ticket items, driven by rising prices and tariffs. Gen Z expects the steepest decline, while millennials, Gen X and baby boomers plan to spend roughly the same or slightly more. Value and relatable brands are central to purchase decisions, and purchasing behavior could shift before December given economic uncertainty and tariff developments.
Read at Fast Company
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