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Yana Iskayeva \/ Getty Images<\/p>\n
Strong consumer demand persists despite high prices, with Americans expecting to spend more on holiday shopping this year. <\/p>\n
Americans plan to spend an average of $2,800 this holiday season\u2014an increase of more than $1,000 from last year.<\/p>\n<\/li>\n
Tariffs and lingering high prices are prompting 62% of shoppers to change how they shop.<\/p>\n<\/li>\n
However, retail sales are projected to surpass $1 trillion this holiday season, signaling strong consumer demand, even amid cost pressures.<\/p>\n<\/li>\n<\/ul>\n
The holidays are here after a bumpy year for the U.S. economy, and Americans still expect to spend far more this year than they did in 2024.<\/p>\n
Shoppers anticipate spending $2,800, on average this holiday season, up more than $1,000 from last year, according to a BMO survey of 2,500 people. Out of all the generations, millennials expect to spend the most\u2014about $4,400. Meanwhile, Baby Boomers anticipate spending the least\u2014 $1,600.<\/p>\n
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While inflation has fallen from its recent peak in the summer of 2022, high prices continue to weigh on consumers. As of September, prices have risen 3%<\/a> year-over-year, in part, due to tariffs imposed by the Trump administration on imported goods<\/a>.<\/p>\n Accordingly, more than three in five (62%) BMO survey respondents said they were changing how they shop due to tariff-related price uncertainty.<\/p>\n Shoppers may find their dollars don’t stretch as far this year, even if they\u2019re spending more, thanks to tariffs and inflation. Smart shopping\u2014comparing deals, planning early<\/a>, and watching for sales\u2014 will be key to keeping budgets on track this holiday season.<\/p>\n To make shopping more affordable, respondents said they planned to use strategies like shopping for sale and clearance items<\/a>, buying cheaper gifts<\/a>, and opting for more affordable brands<\/a>.<\/p>\n