Americans may be feeling uneasy about the economy, but holiday shopping is not expected to fall off a cliff.
A new PwC survey found that consumers plan to spend about $700 on gifts this season, down just 2%.
The survey found that Millennials are pulling back the most, with expected declines of 10% in gift spending and 37% in travel spending.
Researchers also found that 64% of consumers are prioritizing screen-free gifts this year, while 29% plan to use AI to help with holiday shopping.
AI usage is up 7 percentage points from last year, when only 22 percent of shoppers planned on using those tools to help assist with purchases.
It's not just retail spending affecting consumers. Holiday travel costs are rising as well.
According to The Points Guy, Thanksgiving airfares have been running 9% to 13% higher than last year.
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Four in 10 consumers are planning to travel over the holidays, but 17% say they are still undecided.
While many are making travel plans, one-third say they are skipping airfare purchases altogether.
Researchers say high gas prices and cost-of-living concerns are weighing on consumer confidence, but shoppers have continued spending despite those worries.
