Tag: pwc survey

This year’s holiday spending outlook has improved, with gift budgets up 7 percent since June. Forty-one percent of consumers plan to do most of their shopping between Black Friday and Cyber Monday to take advantage of deals, and artificial intelligence is increasingly shaping the shopping experience.

The findings come from PwC, which has an office in Melville, and were released Tuesday in the firm’s “2025 Holiday Sentiment Survey.”

Earlier this year, “cautious,” “deliberate” and “value” reflected consumer sentiment, according to PwC. But now, shoppers say they “are willing to stretch their budgets, even if it means cutting back in January,” according to the survey.

The survey was conducted between Oct. 28 and Oct. 30 and included 2,092 adults 18 and older within the United States.

Holiday spending varies by generation, and not everyone plans to increase their budgets. The survey found that millennials and Gen X are cutting back while baby boomers and Gen Z plan to spend more, reflecting differing financial priorities.

Millennials are scaling back their expected gift spending to $843, down from $921 in June, with a similar trend among Gen X, whose planned spending fell to $679 from $705. The pullback may reflect parents balancing holiday priorities with rising costs, according to PwC.

In contrast, baby boomers are planning to spend $858, up from $671, and Gen Z plans to spend $622, up from $586. For Gen Z, the increase may reflect higher prices, while older generations may be signaling greater financial stability and a willingness to splurge on children and grandchildren, according to PwC.

What are people buying? Gift cards top the list, according to 50 percent of those surveyed, followed by apparel (39 percent), toys (37 percent) consumable – that is, food and beverages – gifts (34 percent), books and music and movies (30 percent).

This year, 50 percent of those surveyed are paying with cash, which may reflect a desire by consumers to “manage debt, stay on budget or make spending more intentional,” according to PwC. Yet baby boomers and Gen X favor credit cards, but Gen Z prefers debit and mobile payments, with 24% report using Apple or Google Pay.

And shoppers are leaning into AI, using it to check prices, budgeting, generating gift ideas and even writing gift messages or cards. While 38 percent of millennials plan to use AI to find gift ideas, 51 percent say they are using social media for these purposes.

With 47 percent of consumers planning to shop online in search of the best prices, retailers can expect digital channels to play a central role in this year’s holiday season.