Consumers Start 2026 Holiday Shopping Season

Spending is expected to reach record levels as shoppers adjust budgets for inflation.

Updated on Oct. 27, 2026 in Spending

Gouache-painted editorial illustration showing shopping bags and a snowflake ornament, representing the careful planning of holiday budgets. — U.S. consumers are entering the 2026 holiday season with record-breaking spending projections, though inflation continues to reshape individual household budgets. AI Illustration. Upload story photo >

Live Poll

Do you plan to reduce your holiday spending this year due to current economic conditions?

Holiday shopping is officially underway in the United States, with projections indicating record-breaking spending despite persistent economic concerns. Inflation remains a central factor influencing how consumers plan to allocate their winter budgets.

Why it matters

Economic uncertainty is actively shaping spending habits, with over half of shoppers reporting that financial conditions are altering their holiday plans. Rising costs are pushing many to adopt new tools and strategies to manage holiday expenses effectively.

Projections show the average consumer will spend over $700, while those with children are expected to spend nearly $900. These figures are analyzed against a backdrop where 56% of shoppers cite current economic conditions as a factor in their planning.

The details

Nearly 30% of consumers plan to utilize AI tools to assist with product research, price comparisons, and budgeting during the 2026 season. Meanwhile, millennials are adjusting their financial priorities, with plans to reduce gift spending by 10% and travel expenditures by 37%.

During the 2025 holiday season, 37% of shoppers accrued more than $1,200 in debt.
The 2026 holiday shopping season is currently underway.

Market Dynamics

This season's spending patterns reflect a continuation of the debt trends observed in the 2025 holiday season, where 37% of shoppers accrued over $1,200 in debt. Retailers are now monitoring how these historical debt levels inform current consumer caution and the use of AI in budgeting.

Shoppers with children are expected to manage significantly higher average costs near $900 compared to the general average of $700. Utilizing AI for price comparison may help households mitigate the impact of inflation on their overall holiday budget.

The takeaway

Consumers can leverage AI tools to identify price discrepancies and stay within their designated spending limits this season. Balancing travel and gift budgets is particularly important for demographics like millennials who are proactively reducing spending in these categories.