Jewelry Takes Back Seat as US Holiday Spending Slows

US consumer spending for the holiday season will see its slowest rise in six years as shoppers lay out more on necessities than on nonessentials like jewelry, a Bain & Company survey has found.

Sales for the November-to-December period will increase 4% year on year to over $975 billion, according to a report Bain published Tuesday. That figure compares with 10-year average growth of 5.2% and a 4.5% gain last year.

Meanwhile, Deloitte predicted a gain of 2.9% to 3.4% to between $1.61 trillion and $1.62 trillion, versus a 4.2% increase in 2024. Online purchases are expected to advance 7% to 9%, in line with last year’s 8% hike, with in-store sales anticipated to grow between 2% and 2.2%, down from 3.4% a year ago.

While Bain derived its figure from its own poll, Deloitte used data from agencies including the US Commerce Department and the US Bureau of Economic Analysis.

Some 41% of consumers are optimistic heading into the holiday season, according to a report from McKinsey. Many intend to give their loved ones gifts they deem more useful given the economic difficulties, tough job market, and higher prices US tariffs have caused.

Some 43% said they would spend less on jewelry over the next three months, 38% indicated they would spend the same, and only 19% noted they would shell out more. Only 9% chose jewelry and accessories when asked on which category people intended to spend most — at the lower end of the spectrum. Of the generational buyers, Gen Z was more likely to purchase jewelry, with 18% picking the category, versus 10% of Millennials, 8% of Gen X and 3% of Baby Boomers.

“A lot of my friends and family members are suffering financially this year, and…a gift card for a grocery store or even a gas station would be appreciated more than a piece of jewelry or artwork, or a typical Christmas gift,” one respondent told McKinsey.

Meanwhile, PwC’s 2025 Outlook survey found consumers expected their spending for the season to decline 5% year on year, while gift outlay will fall 11% to an average of $721. A total of 84% of respondents said they thought they would cut back in general over the next six months, especially on dining out, clothing and big-ticket items.

Image: People at a shopping mall during the holiday season. (Shutterstock)