US Holiday Spending Set to Drop as Gen Z Pulls Back, Survey Shows

Holiday spending in the United States is expected to dip this year, with younger shoppers leading the pullback, according to a new survey by PricewaterhouseCoopers (PwC).

The report, released Wednesday, shows consumers plan to reduce seasonal spending by about 5% on average compared with 2024 — marking the first significant drop since the pandemic in 2020.

The slowdown comes as inflation concerns, higher living costs, and tariffs weigh on household budgets. Retailers, including Walmart Inc., have already warned of mounting price pressures. CEO Doug McMillon recently said costs are rising “each week” as businesses work through inventory imported before the latest levies took effect.

While many companies have avoided sweeping price hikes, shoppers are increasingly seeking out products that deliver the best value. US retail sales have largely held steady this year, but economists remain cautious, citing a weaker job market and rising inflation expectations.

PwC’s survey highlights that more than 80% of consumers intend to cut back over the next six months. The steepest decline is among Gen Z shoppers (ages 17–28), who expect to slash holiday budgets by 23%. In contrast, millennials, Gen X, and Baby Boomers say they plan to spend about the same or even more than last year.