Consumers plan to spend a little less this holiday season than last year as higher gas prices and the overall cost of living take a toll on their personal finances.
A new survey from PwC anticipates that the average amount Americans plan to spend on gifts will decline by about 2% to $708 this holiday season, down from $721 in 2025. The survey, which ran from June 15 to June 26, indicated consumers remain largely resilient despite deteriorating consumer sentiment.
"They continue to spend, despite high gas prices and the lowest sentiment we've ever seen, so it doesn't surprise us that that's going to carry through the holiday season," Ali Furman, PwC US consumer markets industry leader, told Yahoo Finance. "It's just a continuation of the trends."
In 2025, shoppers said they planned to spend about 11% less on gifts and ended up spending 6.5% more year over year. This year could bring a similar scenario, where Americans feel crummy about economic conditions but are willing to spend in certain areas.
Baby boomers said they expect to spend the same amount on gifts as last year, while millennials expect to spend 10% less. Millennials, who are now homeowners and young parents, still make up the largest share of spenders overall.