Holiday Spending in 2025: Americans Plan to Spend Less, PwC Survey Reveals

According to a recent PwC survey, Americans are expected to reduce their holiday spending by 5% this year, bringing the average per-person spending to $1,552. This represents the most significant decline in holiday expenditures since 2020. Despite this reduction, shoppers remain engaged in holiday activities, indicating a careful but active approach to spending.

The survey, which gathered insights from 4,000 adults across multiple age groups, highlights several factors influencing this shift. Rising inflation and ongoing tariffs are primary contributors to the change in consumer behavior. Many shoppers are prioritizing essential purchases and seeking value-focused options, while discretionary spending is more selective.

Alison Furman, PwC’s consumer markets industry leader, emphasized that “Consumers are showing increased caution this holiday season due to rising costs and broader economic uncertainties.” Her remarks reflect the growing need for retailers to adapt their strategies to the evolving shopping landscape.

Generational differences are evident in spending trends. Notably, Generation Z (ages 17 to 28) plans to reduce their holiday budgets by 23%, the steepest decline among all age groups surveyed. Millennials and Gen X are expected to moderate their spending, focusing more on experiences, quality, and targeted gifting rather than broad-scale purchases.

Despite the overall decline in spending, the survey indicates continued engagement in holiday shopping. Many consumers plan to take advantage of discounts and promotional offers, with approximately 39% of holiday gift purchases expected between Thanksgiving and Cyber Monday. This reinforces the importance of well-timed marketing campaigns and strategic promotions for retailers.

Retailers and e-commerce platforms may need to adjust to these trends by offering personalized deals, emphasizing product value, and enhancing online shopping experiences. Companies that can align with consumer priorities while maintaining attractive pricing and promotions are likely to perform well, even amid cautious spending.

For those tracking broader economic trends, the survey also suggests that while Americans are moderating holiday spending, they remain committed to maintaining festive traditions and supporting retail activity. This presents opportunities for businesses to engage customers with innovative promotions, loyalty programs, and convenient shopping experiences.