Americans Feel the Strain of a Uneven Economy
Higher prices continue to weigh heavily on consumers as the holiday shopping season gets underway. According to the annual CNBC|SurveyMonkey 2025 Small Business Saturday Survey, many Americans are entering the year’s busiest retail period with tighter budgets and heightened financial caution. Survey results show that 80 percent of respondents believe goods are more expensive this year, reflecting ongoing cost pressures across essential categories.
The findings underscore a broader sense of economic unease. Despite stable employment levels, households continue to experience uneven financial conditions that shape how they approach discretionary spending. As inflation persists, consumers are prioritizing needs over wants and recalibrating holiday plans accordingly.
Consumers Plan Cutbacks, Especially on Gift Spending
Nearly four in ten Americans say they plan to spend less this holiday season because of higher costs. Gifts for others will see the steepest reductions, according to the survey, as many shoppers reassess nonessential purchases. Analysts note this shift mirrors broader spending trends throughout 2025, with consumers becoming more selective, delaying purchases or waiting for deeper discounts.
Retailers may feel the impact as gifting traditionally drives a significant share of seasonal revenue. Although shoppers will still head to major sales events, from Black Friday to Small Business Saturday, value-driven decisions are likely to dominate behavior. In crowded stores like Macy’s Herald Square — where shoppers were seen browsing ahead of peak shopping days — the atmosphere remains lively, but spending sentiment is noticeably more cautious than in previous years.
Small Businesses Face Tougher Holiday Conditions
The survey’s results highlight growing challenges for small businesses, which rely on the holiday period to boost annual performance. With consumers pulling back and inflation raising operating costs, independent retailers may find the 2025 season particularly demanding. Many have already adjusted product assortments, tightened inventories or increased promotions to stay competitive as shoppers scrutinize prices more closely.
Experts say that while foot traffic is expected to remain solid, conversions could lag as consumers weigh each purchase more carefully. Small businesses that offer personalized service, unique products or strong local ties may still capture loyal customers, but overall spending patterns signal a tougher road ahead for the sector.
Looking Ahead to the Rest of the Season
As the holidays continue, economists will be watching closely to see whether consumer caution persists through December or shifts once promotions peak. While Americans remain engaged with seasonal shopping traditions, the survey makes clear that financial pressures are shaping behavior more sharply than in previous years.
Even with concerns mounting, retailers and small businesses are preparing for steady — though more restrained — activity. For now, the holiday outlook reflects a nation trying to balance celebration with economic reality.