Consumers haven't been this gloomy since the late '90s, Deloitte says

Driving the news: 57% of 4,000 consumers surveyed in Deloitte's new holiday survey said they expect the economy to weaken in the next year — nearly double last year's 30%, and worse than the 54% in the Great Recession year of 2008.

• It's the most negative economic outlook Deloitte has recorded since it began tracking sentiment in 1997.

By the numbers: Consumers plan to spend an average of $1,595 this holiday season, down 10% from last year's $1,778.

• 77% expect higher prices on holiday goods, up from 69% in 2024.
• Gen Z expects to spend 34% less, while millennials expect to cut 13% and boomers expect to spend 6% less.

Yes, but: Gen X'ers —ages 45–60 and in their peak earning years — are bucking the trend with a modest 3% spending uptick.

Zoom out: President Trump's tariffs and new import rules have been driving up retailer costs, especially in apparel, furniture, holiday décor and toys.

What we're watching: Whether generate AI has any impact on holiday season shopping plans, following technology announcements this week from Visa, Mastercard and Walmart.