US Consumers Prepare for Holiday Spending in Uncertain Economy Amid Rising Prices and Labor Market Concerns.
As the holiday season approaches, Americans are bracing themselves for reduced spending due to increasing prices and economic uncertainty. In a year marked by rising costs, stagnant wages, and escalating trade tensions, consumers are cutting back on discretionary expenses like gifts, dining out, and entertainment.
For many, the main driver of this decision is price inflation, which has been steadily climbing since last year's presidential election. According to the latest available data, prices have risen 3% over the past nine months, with some households already feeling the pinch due to higher grocery bills and other essential expenses.
"I'm a person that pays attention all year and will keep notes in my phone if someone mentions something in July they may want," said Grace Brown, 34, of Charlotte, North Carolina. "But this year is different. As prices have climbed over the last year, my budget for gifts has shrunk." Brown's reluctance to splurge is echoed by other consumers who are reining in their spending due to increased costs.
The White House has attempted to mitigate concerns by offering $2,000 stimulus checks and removing import levies on certain agricultural imports. However, these measures may not be enough to offset the growing unease among American consumers.
Consumer confidence has plummeted to its lowest level since April 2020, with many attributing this decline to fears over employment, trade, and inflation. The University of Michigan's Surveys of Consumers report a similar drop in sentiment, suggesting that the economic uncertainty is taking a toll on consumer morale.
"It's kind of hard to have luxuries," said Brown, who has had to scale back her holiday spending due to rising prices. "Prices for everything have gone up." For many Americans, this means making tough choices about what to prioritize during the holidays.
The labor market remains another source of concern, with unemployment edging higher over the past year. This shift in expectations is reflected in recent surveys, which indicate that holiday shopping intentions are likely to be lower than in previous years.
As a result, retailers are bracing for a potential downturn in sales. Deloitte estimates that spending could decline by 4% compared to last year, while the National Retail Federation predicts a 1.3% decrease in consumer spending. The economic boycott movement, sparked by President Trump's trade policies, is also contributing to this trend.
While some consumers are opting out of the economy altogether, others are finding alternative ways to support local businesses and communities. For Sarah Tenbensel, 32, of Minneapolis, this means participating in an economic boycott over Black Friday. "There is fear regarding employment and contacts," she said. "It's more than just tariffs – it's everything. The instability and fear."
As the holiday season begins, Americans will be forced to weigh their spending priorities against the uncertain economic landscape. With prices on the rise and labor market concerns simmering beneath the surface, many consumers are opting for a more frugal approach to gift-giving this year.
As the holiday season approaches, Americans are bracing themselves for reduced spending due to increasing prices and economic uncertainty. In a year marked by rising costs, stagnant wages, and escalating trade tensions, consumers are cutting back on discretionary expenses like gifts, dining out, and entertainment.
For many, the main driver of this decision is price inflation, which has been steadily climbing since last year's presidential election. According to the latest available data, prices have risen 3% over the past nine months, with some households already feeling the pinch due to higher grocery bills and other essential expenses.
"I'm a person that pays attention all year and will keep notes in my phone if someone mentions something in July they may want," said Grace Brown, 34, of Charlotte, North Carolina. "But this year is different. As prices have climbed over the last year, my budget for gifts has shrunk." Brown's reluctance to splurge is echoed by other consumers who are reining in their spending due to increased costs.
The White House has attempted to mitigate concerns by offering $2,000 stimulus checks and removing import levies on certain agricultural imports. However, these measures may not be enough to offset the growing unease among American consumers.
Consumer confidence has plummeted to its lowest level since April 2020, with many attributing this decline to fears over employment, trade, and inflation. The University of Michigan's Surveys of Consumers report a similar drop in sentiment, suggesting that the economic uncertainty is taking a toll on consumer morale.
"It's kind of hard to have luxuries," said Brown, who has had to scale back her holiday spending due to rising prices. "Prices for everything have gone up." For many Americans, this means making tough choices about what to prioritize during the holidays.
The labor market remains another source of concern, with unemployment edging higher over the past year. This shift in expectations is reflected in recent surveys, which indicate that holiday shopping intentions are likely to be lower than in previous years.
As a result, retailers are bracing for a potential downturn in sales. Deloitte estimates that spending could decline by 4% compared to last year, while the National Retail Federation predicts a 1.3% decrease in consumer spending. The economic boycott movement, sparked by President Trump's trade policies, is also contributing to this trend.
While some consumers are opting out of the economy altogether, others are finding alternative ways to support local businesses and communities. For Sarah Tenbensel, 32, of Minneapolis, this means participating in an economic boycott over Black Friday. "There is fear regarding employment and contacts," she said. "It's more than just tariffs – it's everything. The instability and fear."
As the holiday season begins, Americans will be forced to weigh their spending priorities against the uncertain economic landscape. With prices on the rise and labor market concerns simmering beneath the surface, many consumers are opting for a more frugal approach to gift-giving this year.
... inflation's been on the rise & ppl cant afford 2 splurge like they did last year. its not just bout gifts tho, its about dining out & entertainment too. I mean, who can affrd that kinda life when prices r goin up? 
. Like, I get it, prices have gone up and all that jazz, but it's hard to resist the temptation of getting some new merch or gifting my fave person a sick present 
. But at the same time, I feel like I'm being super responsible by scaling back on my spending 
. I mean, can't we just have a little more economic stability and stuff? 
Anyway, I'm def sticking to my budget this year, no matter what 
. Whatever it is, I'm low-key hyped for the holiday season 
meanwhile, i've been fortunate enough to have a stable income and can still afford to splurge on gifts without too much stress 
. all this stress is gonna affect our physical health too, you know? like, if we're already feeling anxious about money, it's not good for our blood pressure and mental well-being 
.
in an uncertain economy 
prices keep climbin & wages stagnatin... its like the gov is playin catch up 
& consumers r gettin smart 
by prioritizin what matters most 
local businesses & communities are gonna thrive, but big retail might struggle 
its all about adaptation now 
. Retailers should have seen this coming and prepared for a potential downturn in sales. I wouldn't put it past some people to try and capitalize on others' struggles during the holidays 
. They're not necessarily worried about prices or trade tensions, it's just that they've been living paycheck to paycheck for so long and any little bit of extra money is a blessing.
. I guess that's why I love hearing about people finding alternative ways to make a difference, like participating in economic boycotts. It's like, hey, we can still make a statement without breaking the bank 
. Wish everyone a happy and (relatively) stress-free holiday season 
!
Inflation be eatin away at peoples' budgets 
especially with wages stagnatin 
instead? 
That's somethin that'll benefit them in the long run 
.
It's like when Katniss Everdeen in The Hunger Games says "The odds are ever in your favor" - I guess that's true this holiday season too!
i feel like this is just another excuse 4 people 2 not wanna spend their cash lol what's the real issue here tho? US consumers are being priced outta the economy, and instead of advocating for a raise or some kinda economic stimulus, they're all about finding ways 2 save a buck 
! Just hoping everyone stays chill and doesn't have to make too many tough choices between gifts and groceries this year 
. Maybe then we can find ways to support each other and make some real changes 
.
. and honestly, who needs gifts anyway? it's the thought that counts, right? or is it the price tag? 
. It's not about being frugal or saving money; it's about making ends meet and feeling secure in uncertain times 
. We can't just blame consumers for being cautious, but also need to acknowledge that the system is flawed and needs to be fixed 
its not just about tariffs or whatever, its about the everyday struggles of making ends meet 