Meet&CoNEW YORK – U.S. consumers are preparing to tighten their wallets over the next six months, largely due to rising prices, tariffs, and the ongoing cost-of-living concerns.
According to PwC’s 2025 Holiday Outlook survey, a substantial 84% of consumers plan to reduce their spending, with significant cuts expected in dining out (52%), clothing (36%), and high-ticket purchases (32%).
Additionally, 53% of respondents said that price hikes would likely influence their buying decisions through the remainder of the year.
For the upcoming holiday season, consumers anticipate spending about 5% less than they did in 2024, marking the first significant decrease since 2020. This shift in behavior is expected to challenge retailers, as many consumers are scaling back their festive budgets.
PwC clarified that their survey, conducted in June, was done prior to President Trump’s tariff changes—some being paused or delayed. The company notes that economic conditions are still fluctuating, and purchasing habits could change in response to these developments.
Among different demographic groups, Generation Z (17-28 years old) is expected to cut their holiday spending the most, with a 23% reduction. This age group is facing major life changes and economic uncertainty, with many struggling to find stable employment and save money.
However, Millennials, Gen X, and Baby Boomers are likely to maintain or even increase their holiday budgets, offering a brighter outlook for retailers targeting these generations.
Key Insights from the PwC Report:
Value is King: A significant 78% of consumers are looking for more affordable holiday options, and 65% expect deeper discounts after the holiday season. PwC predicts this will result in smaller, more thoughtful gifts and more subdued family gatherings.
Shopping Preferences: Shopping habits are split, with 53% of consumers planning to shop in-store and 51% opting for online platforms like Amazon, eBay, and Etsy. The shift towards e-commerce is significant, though traditional retail still holds its appeal.
In-store Shopping Appeal: For those who prefer brick-and-mortar stores, the top draws include hands-on interaction with products (48%), in-store promotions (38%), and the festive atmosphere (25%).
The PwC survey, which was conducted from June 26 to July 9, gathered insights from 4,000 U.S. consumers. The respondents were diverse, representing a broad range of genders, regions, and generational groups, including 1,000 individuals each from Gen Z, Millennials, Gen X, and Baby Boomers.
