Americans are preparing to cut their holiday spending this year, with a survey from PwC indicating an average budget of $1,552 per person for the 2025 season, reflecting a 5% decrease from 2024.
This anticipated reduction spans gift purchases, travel, food, and entertainment, marking the most significant drop since 2020, when the COVID-19 pandemic severely impacted consumer spending. A concerning trend emerges among Generation Z, who plan to reduce their holiday budget by 23%, largely due to ongoing challenges in the job market.
Last year, this demographic notably increased their holiday spending by 37%, highlighting a stark shift in consumer behavior. Overall, 84% of survey respondents indicate plans to tighten their belts over the next six months, driven by rising prices, new tariffs, and escalating living costs.
The implications of this spending cut could ripple through the economy, affecting retailers and service providers who rely heavily on holiday sales. As previously reported, the economic landscape continues to shift, with consumers adapting to financial pressures that may reshape their holiday traditions.
