Signs for discounts inside a clothing store.

By Chris Spiker From Daily Voice

More Americans are cutting back on holiday spending as rising prices and higher living costs weigh on families, according to a new survey.

Deloitte released its findings about Black Friday and Cyber Monday expectations on Monday, Nov. 24. The major accounting firm found that shoppers expect to spend an average of $622 between Thursday, Nov. 27, and Monday, Dec. 1.

The Black Friday-Cyber Monday spending forecast is down 4% from 2024, marking the first decline after four straight years of growth. 

"While we expect shoppers to plan to pull back on spending, we also anticipate strong participation throughout the holiday week, with many planning to blend the convenience of online shopping with the energy of the in-store experience," said Natalie Martini, Deloitte's vice chair and US retail and consumer products sector leader. "This highlights the importance for retailers to deliver a smooth, connected experience no matter where people choose to spend their holiday dollars."

Shoppers are also changing how they buy.

Deloitte found that nearly half (47%) have already seen higher prices for holiday items, and more than one-third (34%) say retailers are offering fewer discounts. About 60% already have items sitting in online carts waiting for deals, while 38% plan to only buy items marked at least 50% off.

Wrapped presents under a Christmas tree.

Wrapped presents under a Christmas tree.

Unsplash - Clint Patterson

Even with smaller budgets, more people plan to shop during Black Friday-Cyber Monday. Deloitte said 82% of shoppers expect to take part, up from 79% in 2024.

Generation Z is driving that increase, with 92% planning to shop and 72% saying they will head into stores on Black Friday.

"While most shoppers are showing restraint this season, the spending power of Gen Z is growing — they are responsible for about $20 of every $100 holiday dollar spent, compared to just $4 five years ago," said Brian McCarthy, a principal in Deloitte's strategy and analytics division. "We expect they are headed back to the stores on Black Friday to take part in the excitement of the day."

The pullback mirrors national forecasts showing that most Americans plan to spend the same or less in 2025. WalletHub found that 65% of Americans say the "Grinch Economy" will make the holiday season "less fun."

According to a September outlook from PricewaterhouseCoopers, holiday shoppers are expected to spend less in 2025, marking the first decline since the COVID-19 pandemic. PwC expects gift budgets to drop 11% to $721, as consumers pull back on shopping amid President Donald Trump's widespread tariffs.

Deloitte said 64% of shoppers plan to use credit cards or buy now, pay later (BNPL) services to stretch their budgets. That finding echoes WalletHub, which says that one in three Americans will apply for a new credit card to help cover holiday costs.

Deloitte surveyed 1,200 consumers between Wednesday, Oct. 15, and Thursday, Oct. 23.