Holiday shoppers plan first spending pullback since 2020, report says [View all]

Source: msn/Axios

9h

Americans plan to spend 5% less this holiday season compared to last year — the first pullback since 2020 — as rising costs and tariff worries weigh on wallets, according to PwC's 2025 Holiday Outlook out Wednesday.

Why it matters: The squeeze is hitting gift budgets hardest, shifting dollars toward food and essentials.

It's one of the first sizable surveys to flash a significant warning sign for the retail sector this coming season.

The big picture: The holidays will still happen — but with tighter wallets and more deliberate choices.

The effects of tariffs are expected to be felt more widely this fall, with higher prices, plus a change in product mix and holiday promotions.

Retailers' pre-tariff inventory is nearly depleted — and what hits shelves next will have already been subject to higher tariffs rates that companies are starting to pass on to consumers.

Read more: https://www.msn.com/en-us/shopping/general/holiday-shoppers-plan-first-spending-pullback-since-2020-report-says/ar-AA1LL1mm

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Link to PwC (PricewaterhouseCoopers) REPORT - Holiday Outlook 2025 A seasonal remix: Value, meaning and generational shifts