US holiday shoppers rein in spending amid pressure

Most US consumers expect to cut back on holiday spending this year as financial pressure weighs on household budgets, according to new national survey data from research firm Mercury Analytics.

The findings draw on two online omnibus surveys of just over 1,000 adults each. Sixty per cent of respondents said their financial situation is influencing them to reduce holiday shopping, while only 8% expect to spend more overall.

The data points to a broad shift in consumer behaviour. 

"Six in ten consumers saying finances are influencing their holiday spending is a clear signal," said Ron Howard, CEO of Mercury Analytics. "It shows that economic pressure is shaping holiday decisions for a majority of households this year."

The figures suggest retailers face a season in which many shoppers remain engaged but adjust what and how they buy. The data also shows differences in sentiment and spending plans across age groups and channels.

Mixed holiday mood

Respondents expressed both positive and negative feelings about the holiday period. Fifty-three per cent said the holidays primarily make them think about family togetherness. Thirty-six per cent associated the season with financial stress. Another 27% described their feelings as mixed or negative.

The combination of emotional anticipation and financial strain indicates that many households continue holiday traditions while reassessing outlays. The survey results suggest that budget concerns cut across demographic groups, even as the intensity varies by age.

Age-based differences

Spending intentions differed sharply by age band. Seventy per cent of adults aged 55 to 64 said they plan to reduce holiday spending. This is the highest share among all age groups in the study.

Among adults aged 65 and older, 55% said they would cut back. This makes those already in retirement less likely to reduce spending than those approaching retirement age.

Younger adults showed more willingness to maintain or increase spending. The survey found that adults aged 25 to 34 are more likely to keep or raise their holiday budgets. This group also accounts for a larger share of the 12% of consumers planning to give higher-end gifts.

The contrast suggests that pre-retirement households may feel more acute pressure from financial obligations such as housing, healthcare and savings, while some younger adults prioritise gifting or discretionary purchases despite broader economic concerns.

Shifts in gifting

Many respondents reported that they are changing their approach to gifting rather than cancelling it. Forty-one per cent said they plan to buy fewer gifts. Thirty-nine per cent said they would focus on practical or budget-friendly items.

Alternative forms of giving also feature in the responses. Seventeen per cent of consumers said they plan to make gifts themselves. Fifteen per cent said they intend to give experiences or acts of service.

These patterns indicate that value, practicality and personal effort play a larger role in gift selection this year. The data implies that categories viewed as essential or useful may fare better than purely discretionary items.

Retail and digital channels

Physical retail still dominates holiday shopping decisions in the survey. Seventy-seven per cent of respondents said they rely on bricks-and-mortar stores when planning or making purchases. Retail websites also play a major role, with 74% of consumers using online storefronts.

Social and digital platforms now influence discovery for a substantial share of shoppers. Forty-nine per cent of respondents said they use Facebook in connection with holiday shopping.

Younger consumers show a distinct pattern of usage. Twenty-seven per cent reported using TikTok and 26% reported using Instagram for holiday-related browsing or decisions.

Artificial intelligence tools also feature in the discovery process. According to the survey, 25% of respondents said they use Google Gemini and 17% said they use ChatGPT to guide holiday purchases.

The mix of traditional retail, eCommerce sites, social media and AI tools points to a fragmented but interconnected shopping journey. Consumers appear to combine in-store visits with online research and social content as they look for gifts within tighter budgets.

Survey approach

The results come from two national online omnibus surveys conducted by Mercury Analytics. Each survey included slightly more than 1,000 US adults. The firm collected responses across a broad cross-section of the population.

Mercury Analytics specialises in research technology and analytics tools. The company works with organisations in multiple industries that require ongoing consumer and market insight.