Summary
Americans plan to spend 5% less on holiday shopping this year compared to last year, marking the first decrease since 2020. Rising costs and concerns about tariffs are leading people to tighten their spending, affecting the retail sector.
Key Facts
- Americans expect to reduce holiday spending by 5% this year compared to last.
- Gift budgets will be hit hardest, with an 11% drop expected.
- Consumers plan to spend $1,552 on average, down from $1,638 last year.
- 84% of surveyed people plan to cut back on spending in the next six months.
- Households with children plan to spend more ($2,349) than those without ($1,089).
- Nearly 40% of gift spending will happen between Thanksgiving and Cyber Monday.
- Gen Z plans to cut spending by 23%, while Boomers expect to increase spending by 5%.
- Tariff concerns are causing changes in product prices and holiday promotions.
