Americans are pulling back on their holiday shopping this year as worries about the economy grow stronger.
A new Gallup report shows the Economic Confidence Index falling by seven points to –30 in November. This is the lowest reading since July 2024, when it sat at –24. When President Donald Trump took office earlier this year, the index was –19, showing that people felt more hopeful then than they do now.
Only 21% of Americans said the economy is doing “excellent” or “good,” down from 24% in October. At the same time, 40% said the economy is “poor,” which is a rise from the previous month. This shows that more people feel the country is moving in the wrong direction.
Confidence in the job market also dropped. In November, just 33% said it was a good time to find a strong job, while 63% said it was a bad time. This gap shows how unsure many people feel about work and income.
These worries are affecting holiday spending. The poll found that Americans cut their gift budgets by a record amount.
Gallup noted that people were far less excited about holiday shopping in November than they were earlier in the season. On average, Americans now plan to spend $778 on Christmas and holiday gifts. This is a sharp drop of $229 from October’s estimate of $1,007. It is also lower than the estimate from November 2024, when Americans expected to spend $1,012.
Gallup explained that people often spend less as the holidays get closer, but this year’s drop is the biggest ever recorded, even bigger than the $185 decline during the 2008 financial crisis.
This major cutback comes just as the U.S. ended its longest government shutdown in history. It also comes at a time when President Trump continues to promote tariffs on many imported goods, which could push prices higher for shoppers.
The poll surveyed 1,321 US adults between November 3 – November 25 and has a margin of error of ±4 percentage points.