Gen Z Shoppers Feeling Pinch Ahead of Holiday Season
Summary
Gen Z shoppers in the U.S. are expected to cut back on their spending this holiday season. A survey shows younger generations plan to spend significantly less due to economic pressures and declining consumer confidence. Overall, consumer spending is expected to decline compared to last year, with concerns about higher prices and a weakening economy.Key Facts
- Consumers plan to spend an average of $1,595 this holiday season, down 10% from 2024.
- Spending cuts are expected in both retail goods (14% decrease) and experiences (6% decrease).
- Gen Z shoppers' spending is projected to drop 34% compared to last year.
- 62% of Gen Z are worried about higher prices during the holidays.
- Over half of surveyed consumers expect the economy to weaken in the next year.
- The University of Michigan reported a decline in consumer confidence, with October's level at its lowest since May.
- Despite low confidence, consumer spending has been strong in 2025, contributing to economic growth.
- Retailers might still see spending during the holidays as consumers seek enjoyment despite lower confidence.
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