U.S. consumers are projected to significantly reduce their holiday spending in 2025, marking the first notable decrease since 2020. A PricewaterhouseCoopers survey of approximately 4,000 consumers revealed an expected 5.3% drop in spending, averaging about $1,552 per person. This cutback is attributed to rising prices, tariffs, and the overall high cost of living. A substantial 84% of Americans anticipate cutting back on expenses such as dining out, clothing, and large purchases over the next six months. Value is expected to be a primary focus for shoppers this year, influencing their purchasing decisions. Gift spending is anticipated to experience the most significant decline, falling by 11%. Conversely, spending on travel and entertainment is expected to see a slight increase of 1%. Gen Z is predicted to lead this spending reduction, with a projected decrease of 23% in their holiday expenditures. However, millennials, Gen X, and baby boomers are expected to maintain or slightly increase their spending compared to the previous year. Consumers are looking for brands that resonate with them, beyond just good deals. It is important to note that consumer behavior could shift before the holiday season due to economic changes and evolving tariff situations.