U.S. consumers largely anticipate maintaining their holiday spending levels compared to the previous year, according to a recent survey by PwC. Though, a notable exception exists: Baby Boomers plan to increase their spending by an average of 5%. The PwC survey, conducted between June 27 and July 7, 2025, included a representative sample of 4,000 U.S. consumers.

This cautious approach stems from existing concerns about the rising cost of living, including increased utility bills. Consumers are also apprehensive about potential price hikes due to renewed trade tensions and tariffs,prompting them to closely monitor price tags and seek out the best deals through early shopping or delayed purchases.

The impact of Tariff Concerns

According to Jason Furman, consumers aren’t necessarily reacting to the tariffs themselves, but rather to the possibility of price increases. This anticipation is driving a heightened awareness of pricing and a more strategic approach to holiday shopping.

Generational Spending Differences

While overall spending is projected to remain stable, the divergence in spending plans between generations is significant. Baby boomers,generally having more disposable income and financial security,are demonstrating a willingness to spend more. Other generations, facing economic pressures, are prioritizing value and seeking discounts.

Broader Economic Implications

The flat spending forecast,despite a relatively healthy labour market,suggests that consumers are prioritizing financial prudence. This cautious sentiment could indicate broader concerns about the economic outlook,perhaps impacting overall economic growth during the crucial holiday season. The impact of tariffs, even the *threat* of them, is clearly influencing consumer psychology