Most U.S. consumers expect higher holiday prices and a weaker economy, survey finds

Economic Outlook - A significant 57% of U.S. consumers expect the economy to weaken in the coming year, marking the most negative outlook since Deloitte began tracking in 1997 [2] - This pessimism is reflected in holiday spending plans, with consumers intending to spend an average of $1,595, which is 10% less than the $1,778 planned last year [4] Consumer Behavior - 77% of surveyed individuals anticipate higher prices on holiday items, an increase from 69% last year, influenced by recent tariff hikes [3] - Younger consumers, particularly Gen Z, plan to spend 34% less this holiday season compared to the previous year, while Millennials expect to spend 13% less [5][6] Retail Impact - Retailers are advised to exercise caution as the findings suggest a potential decline in sales during the crucial holiday season [8] - Holiday spending across stores and online is projected to rise by 4% year over year, a decrease from the 10-year average growth of 5.2% [9] Value-Seeking Trends - A notable increase in value-seeking behaviors has been observed, with 70% of respondents engaging in multiple deal-seeking activities [12] - Consumers plan to cut back on non-gift holiday expenses by an average of 22%, while gift spending is expected to see a smaller reduction [13]