U.S. Christmas spending is set to experience its steepest decline since the pandemic era

In a recent report by PwC, it is predicted that Christmas spending in the United States will see a decrease across all generations in 2025. The report, based on a survey of 4,000 American shoppers in June and July, suggests that millennials, Generation X, and baby boomers will spend approximately the same as they did in previous Christmases. However, the report does not provide specific spending amounts for each demographic.

The report did not survey consumers older than baby boomers, nor did it make any predictions for 2024. On the other hand, Generation Z's Christmas spending is expected to see a significant drop. In 2025, the average spend per person for Generation Z is predicted to be $1,552, a decrease of 23% compared to 2024. This decrease is the largest since 2020, with spending falling 7.6% to $1,187 in that year.

The retreat of consumers aged 17 to 28, due to economic uncertainty, is the main reason for this decrease in spending. Interestingly, PwC partner, Kelly Pedersen, stated that Generation Z is increasingly visiting stores for the experience, but not necessarily making transactions.

The tariff measures announced by President Donald Trump last August have made around 84% of consumers likely to reduce their spending in the next six months. Overall Christmas spending in the U.S. is expected to decrease by 11%, resulting in a spend of up to $721 per person in 2025, compared to $814 in 2024.

However, the report did not provide a reason for the expected spending consistency among millennials, Generation X, and baby boomers. Furthermore, it did not predict any significant increase in Christmas spending for any demographic in 2024 or 2025. The search results do not provide the name or identity of the PwC partner mentioned in the article discussing Generation Z's holiday spending.

U.S. Christmas spending is set to experience its steepest decline since the pandemic era