Finding Clarity In The Chaos: Using Data To Identify Holiday Spending Trends

Tuesday, 4 November 2025, 9:25 am
Article: Hugh Grant

2024 set records for holiday spending, but 2025 is shaping up to look very different. Consumer financial data from 2025 points to increased caution when it comes to shopping, with most Americans planning to spend the same or less than the previous year. Paying close attention to this data is important for consumers and retailers, as it can help identify holiday trends in consumer behavior. Understanding purchasing patterns is critical for successfully preparing for the holiday season.

When studying consumer finances and behavior, an important metric to consider is the Equifax Market Pulse Index. This index analyzes proprietary and deep data insights, aiming to provide clarity for consumers as they prepare for the holidays. More specifically, Equifax measures data points such as credit, debt, income, assets and capacity.

Equifax calculates a Market Pulse Index for each generation in the United States, highlighting the different financial realities between age groups. In 2025, the Market Pulse Index for the average US population is 61.4, which is a decrease from its 2021 value of 62. Baby Boomers and Traditionalists both have higher indices–64.2 and 64.8, respectively–whereas Gen Z, Millennials and Gen X have lower values.

Lower indices reflect greater financial strife. Factors that could have caused an index of 61.4 include an increase in delinquencies (especially amongst younger generations), wealth and income volatility, student loan impacts and high savings rates. Other data shows that middle-income households are experiencing tighter budgets, with a 31.6% increase in the cumulative cost of spending for necessities since January 2021. Additionally, severe delinquencies are up for certain demographics in the United States; young city families have experienced a 10% increase since April 2019.

Looking at the proportion of population to assets is also useful in understanding the financial landscape. For example, Baby Boomers and Traditionalists make up 34% of the US population, but hold 44% of the total assets. On the other hand, Millennials make up 23% of the population and hold only 14% of the country’s assets. There is further inequality within generations as well. For example, within Gen Z, 5% of households control roughly 63% of the generation’s wealth.

With this important context in mind, understanding consumer shopping trends becomes easier. 2025 has seen an increase in caution when it comes to holiday spending. However, Americans still want to make the holidays special for their loved ones, and are looking for efficient and cost-friendly ways to purchase gifts.

One popular trend in 2025 is early shopping. 80% of all planned holiday gift shopping is predicted to happen by the end of Cyber Monday. The five-day period between Thanksgiving and Cyber Monday is expected to be particularly busy, with 39% of total planned gift spending anticipated during this window.

Consumers are also looking for Buy Now, Pay Later (BNPL) options when they shop. BNPL is becoming increasingly popular, with 43% of consumers saying that BNPL influences where they choose to shop. Additionally, 67% of parents would use BNPL to finance gifts such as vehicles, furniture, electronics, clothing and accessories.

Another important trend is the increased desire for thoughtful interactions and data-driven marketing. 71% of consumers expect companies to offer personalized interactions, and fast growing companies drive 40% more revenue from personalization than slower-growing companies.

Finally, another trend to watch is the increase in domestic travel. Younger Americans are more likely to travel; 55% of Gen Z and Millennials will likely travel over the 2025 holidays, whereas only 26% of Baby Boomers are expected to travel.

The holidays are always a hectic time of year, but with the help of detailed data, consumers and retailers can identify trends and effectively prepare for the shopping season.

© Scoop Media