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

• Shoppers have upped their holiday shopping budgets since this summer, according to a PwC survey.
• Baby boomers and Gen Z are leading the increase.
• The results constitute a rosier outlook than many retailers had going into the fall.

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. In PwC’s June Holiday Outlook survey, that amount was $721.

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 we
conducted 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.

Going into the holiday shopping season, the National Retail Federation said that this holiday season would be the first holiday season with $1 trillion in spending. At the same time, the trade group said it expects sales growth to be below last year’s 4.3% rate. EMARKETER, meanwhile, expects holiday retail sales to grow 3.6% this year. (EMARKETER is a sister company to Business Insider.)

As the holidays approach, chains from McDonald’s to Home Depot have warned that middle-income consumers are cutting back on spending.

Yet other retailers have expressed optimism about holiday spending at their stores.

Walmart executives have pointed to strong results from smaller shopping events, such as the back-to-school season and Halloween, as evidence that shoppers are still willing to spend on special occasions — as long as they can get decent value for their money.

And Dollar General has said that it is focusing on low-priced items, including many that cost $1, going into the holidays.

If shoppers do indeed spend more this holiday season, the report said it could come at the expense of their spending in the first quarter of the new year, which is historically a slow time for retail sales.

“When it comes to the holidays, people are willing to stretch their budgets, even if it means cutting back in January,” the report reads.