Americans are expected to open their wallets this holiday season, increasing their gift budgets even as a slowing job market and stubborn inflation weigh on consumer confidence, according to a new analysis from Visa Business and Economic Insights.

U.S. consumers are forecast to spend an average of $736 each on holiday gifts, a 10% increase from the $669 reported last year, Visa said in its 2025 holiday spending outlook .

Inflation partly explains this year's projected sales growth, with the Consumer Price Index showing that prices rose 3% on an annual basis in September. But Americans are also planning on upping their gifting, especially older consumers, with baby boomers forecasted to boost their holiday spending by 21%, the study found.

The robust spending outlook highlights con

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