Other generations aren’t likely to spend much more, either, given the tight job market and persistent inflation, according to a survey.

Holiday spending in the U.S. is expected to fall 5% this year, driven largely by Gen Z’s sharp 23% pullback, according to a survey from a leading consulting and accounting firm.

Households plan to be more deliberate in their spending over the holidays, prioritizing value and deciding what to splurge on and where to scale back, says PwC’s 2025 Holiday Outlook, which was released Wednesday.

The decline in planned spending underscores how economic uncertainty is affecting consumer sentiment heading into the most important retail season of the year.