As the economic outlook reportedly reaches its lowest point since 1997, consumers are looking for ways to more effectively manage their spending. This, according an update from Deloitte. The firm has noted that surveyed consumers now intend to spend an average of $1,595 this festive season, down a significant 10% year-over-year. Respondents expect to lower their overall spending on retail goods (-14% year-over-year) as well as experiences (-6% year-over-year).
The report from Deloitte pointed out that economic uncertainty is high: More than three-quarters (77%) of surveyed consumers now expect considerably higher prices on so-called holiday items, and the majority or 57% expect the economy to weaken further in the coming year— the “least optimistic” outlook since Deloitte actually began keeping track of economic sentiment in 1997.
Almost all generations and income groups surveyed plan to pull back this season. Only Gen X shoppers appear to be in “a slightly better position as they plan to increase their spending by 3% this year.”
To hopefully stretch their budgets, many plan to exhibit “value-seeking behavior by searching for deals (89%), trading down on brands and retailers (77%), reusing or recycling items (73%), and making DIY gifts (49%).”
Underscoring the significance of being together, 1 in 4 or around 25% consumers surveyed intend to host a “holiday celebration and spend an average of $252.”
For the past 4 decades, Deloitte said that it has studied consumer behavior and sentiment ahead of the festive season.
While holiday shopping has evolved – from bustling malls and paper ads to seamless omnichannel options, digital discovery, and AI-driven tools – consumers stay committed to being close with friends and family this festive season.
Deloitte’s “2025 Holiday Retail Survey” explores consumers’ holiday shopping intentions, revealing that many plan to spend cautiously.
Deloitte’s Holiday Shopping Confidence Index (HSCI) measures consumers’ confidence and capacity “to spend during the season and signals that many holiday shoppers will adopt a more restrained spending approach than in recent years.”
Over half of surveyed consumers are said to be concerned about the current state of the economy: most or 57% of respondents expect the economy to weaken considerably. This could be due to abrupt announcements of tariffs by the Trump Administration, other geopolitical conflicts involving Israel, Ukraine, and Russia, along with rising inflation and the cost-of-living crisis.