Gen Z and boomer shoppers are upping their holiday spending budgets despite a tough economy

"Maybe this holiday season won't be so lean after all. Despite early predictions that shoppers would cut spending as they bought gifts this year, a PwC report released Tuesday shows that consumers have upped their spending plans by 7% since June. PwC's Holiday Sentiment survey, conducted by the Big Four firm in October, shows that shoppers plan to spend an average of $770 on gifts this year."

"The increase contrasts with predictions earlier this year from some analysts and retailers that shoppers would hold back on spending, potentially making this one of the slowest holiday shopping seasons in years. "This is the tension defining the 2025 holiday season: consumers said they were holding back - but their actual spend since weconducted our Holiday Outlook survey suggests otherwise," the report reads. "In other words, we're seeing a classic 'say-do gap,' it says."

"The oldest and youngest shoppers appear to be powering the increase. Baby boomer respondents said that they plan to spend an average of $858 this holiday season, up from $671 in June, while Gen Z shoppers upped their planned spending to $622 from $586. Millennials plan to spend less - $843 versus $921 in June - while Gen X respondents had averaged $679 in the latest survey, down from $705."

A survey conducted in October found shoppers plan to spend an average of $770 on gifts this year, up from $721 in June, a 7% increase. The increase contrasts with earlier predictions that shoppers would cut spending and could make this one of the slowest holiday seasons in years. Baby boomers and Gen Z drove the rise: boomers raised planned spending to $858 from $671, and Gen Z to $622 from $586. Millennials and Gen X lowered their planned spending to $843 and $679, respectively. Trade groups forecast overall holiday retail sales growth near 3.6–4.3%.

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