The holiday shopping season is approaching, and with it, new consumer patterns are emerging. With the help of data-driven insights, consumers, retailers and lenders can predict trends and effectively prepare for the holidays.
On the whole, consumers in the United States are approaching holiday spending with more caution than in previous years. However, there is more to the story. Different generations are facing different financial realities, which in turn leads to different purchasing patterns.
Data suggests that Gen Z is facing heightened financial challenges. This generation has a Market Pulse Index of only 58.6 (the lowest of any generation). Over the past four years, Gen Z has seen a 5% decrease in Market Pulse Index value, whereas the average US population has only seen a 1% decrease.
These challenges influence spending patterns, with Gen Z holiday spending decreasing by 23% between 2024 and 2025. Most other generations plan the same amount of holiday spending in 2025 as in 2024; Millennials are down only 1%, whereas Baby Boomers are up 5%.
The inflated financial challenges that Gen Z faces has led the younger generation to take a much more reserved approach to holiday spending. For example, certain strategies that help consumers tread lightly with purchases are on the rise. These strategies include trends like early shopping.
Paying careful attention to the data is helpful in anticipating upcoming challenges and trends for spenders and sellers alike.
Source: Equifax