Holiday Spending to Dip Nearly 7% This Year, Survey Finds
American consumers are planning to pull back on holiday spending this year, with the average person anticipating spending approximately $990 on gifts and related purchases, a decrease of nearly 7% from 2024.
The findings, released today by The Conference Board, indicate a significant shift in consumer behavior as persistent inflation continues to impact household budgets. The average gift budget is expected to be $650, down 3.9% from last year, while spending on non-gift items like food and decorations will fall by 12% to $340. After accounting for inflation, both figures represent multiyear lows. This cautious approach to spending could signal a broader slowdown in economic activity during the crucial holiday season.
“Several years of relatively high inflation have raised price levels and squeezed consumers’ wallets,” said Stephanie Guichard, Senior Economist of Global Indicators at The Conference Board. Interestingly, the pullback is most pronounced among younger and wealthier consumers, while those over 65 and households earning under $50,000 annually anticipate slightly increasing their spending. Despite the overall decrease, online shopping remains popular, with 43% of consumers planning to purchase at least half of their gifts online – a figure consistent with last year, according to The Conference Board. Consumers are also showing increased interest in toys and games, travel packages, and gift cards, while demand for books, music, and tools is waning.
Travel plans are also being scaled back, with only 30% of consumers intending to travel during the holiday season, a slight decline from 2024. Consumers are also highly aware of recently imposed tariffs on imported goods and are prepared to adjust their purchasing habits accordingly, seeking discounts or buying fewer items if prices rise. The PYMNTS Intelligence study from earlier this year highlighted a similar trend, with over 80% of consumers already altering their shopping behavior in anticipation of higher prices.
Officials at The Conference Board anticipate continued monitoring of consumer spending patterns throughout the holiday season to assess the full impact of economic pressures.
