The stockings hung by the chimney will be lighter this year. Americans plan to cut holiday spending by 10% to an average of ~$1.6K — the sharpest drop since tracking began — as 57% of respondents expect the economy to worsen over the next year. It’s also the first shopping season since President Trump’s latest tariff wave hit imports, and 77% of consumers now anticipate higher prices on holiday items.

• Gen Z shoppers are feeling the squeeze most, planning to slash holiday budgets by 34% from last year, while millennials expect a 13% cut.
• Value hunting is now the norm, with seven in 10 consumers using multiple tactics such as switching to store brands, cooking at home, or buying secondhand.

Retailers on thin ice: The pullback extends beyond gifts, as consumers plan to slash spending on hosting, décor, and holiday clothing by 22%. Deloitte’s Brian McCarthy warned the findings suggest “we’re getting towards the end of that resilience” after years of consumers powering through economic pressures. With holiday spending growth expected to hit just 4% compared to a 10-year average of 5.2%, retailers are set to face their most challenging festive season in years.