Economic fear dampens holiday cheer

Published: Friday, December 26, 2025 at 12:00 am

Economic Anxiety Dampens Holiday Spending

A recent series of polls indicates a shift in American consumer behavior this holiday season, with economic anxiety influencing spending habits. Several surveys reveal a trend of reduced spending, increased price sensitivity, and lowered expectations among consumers.

The CNBC All-America Economic Survey found that 41% of Americans plan to spend less on holiday gifts this year, a significant increase from the previous year and the largest pullback since inflation spiked in 2022. Among those cutting back, nearly half cite the high cost of goods as the primary reason. While only 16% plan to spend more, a notable portion of this group attributes their increased spending to higher prices.

Data from the Associated Press-NORC Center for Public Affairs Research further supports this trend. The survey shows consumers are becoming more deliberate, with many spending more time searching for deals and delaying major purchases. A significant percentage are buying nonessential items less frequently, and a substantial portion are relying more heavily on savings.

These trends are reflected in broader economic confidence measures. The Gallup Economic Confidence Index dropped sharply in November, reaching its lowest level since mid-2024. Optimism about the future is also declining, with a majority of Americans believing the economy is worsening.

These attitudes are reshaping holiday budgets. Americans now expect to spend significantly less on gifts compared to earlier estimates and last year's figures. This year's midseason drop in spending expectations is the largest ever recorded by Gallup, surpassing even the pullback during the 2008 financial crisis. The retrenchment is impacting households across income levels, with lower-income Americans pulling back more sharply.

The current economic climate is marked by inflation fatigue and a broader sense of instability. This is not just about specific policies but a general feeling of unpredictability. Americans are not abandoning the holidays but are downgrading them, opting for fewer gifts, lower price points, and more caution. The polls suggest holiday spending has become less about celebration and more about minimizing risk.

BNN's Perspective: While the data paints a picture of economic caution, it's important to recognize the resilience of the American consumer. The holiday season remains a significant cultural event, and the adjustments in spending reflect a pragmatic response to economic realities. The focus on value and careful budgeting suggests a desire to maintain traditions while navigating economic uncertainty.

Keywords: holiday spending, economic anxiety, consumer confidence, inflation, gift-giving, spending cuts, economic outlook, Gallup, CNBC, AP-NORC, affordability, prices, budgets, Trump, economy

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