American families plan to spend more money this Christmas, even as concerns about the economy persist. This is revealed in a new analysis by Visa Business and Economic Insights, which anticipates a significant increase in the budget allocated to gifts and celebrations. According to the report, the holiday spirit could overcome financial pessimism. The study indicates that consumers in the United States will spend an average of $736 on gifts during the 2025 holiday season. This represents a 10% increase compared to last year's $669. While inflation accounts for some of the increase, Visa notes that many households also plan to be more generous with their purchases, especially baby boomers, who will increase their spending by 21%. Inflation continues to be a determining factor. The Consumer Price Index (CPI) showed a 3% year-over-year increase in September, making basic goods and gifts alike more expensive. Even so, the report highlights the strength of the American consumer. “We are seeing consumers spending in a much more robust way than the confidence and economic sentiment data reflect,” said Michael Brown, chief economist at Visa, in a statement to CBS News. The analysis was based on data from the U.S. Department of Commerce, excluding sectors such as automobiles, gas stations, and restaurants. Visa experts noted that before the pandemic there was a close relationship between consumer spending and their level of confidence. But that connection has weakened. For example, last April, when consumer confidence fell to its lowest point since the pandemic, real spending rose 3.1% year-over-year, a sign that Americans are still buying despite economic concerns. Consumer confidence has deteriorated for the third consecutive month, according to the University of Michigan and the Conference Board, reflecting fears of a weaker job market and persistent inflation.However, wage increases have helped sustain consumption. Brown explained that stable incomes allow many households to continue buying, even as prices rise. Other forecasts, such as those by Adobe for Business and Gallup, align with Visa's estimates. Both anticipate that Americans will spend billions of dollars on gifts, travel, and food during the holidays, despite their caution regarding the economy. This trend could also set the tone for year-end retail sales. With Black Friday and Cyber ??Monday promotions just around the corner, experts predict that consumers will seek to maximize every deal without sacrificing the joy of giving. However, the study also warns that low- and middle-income households will face difficult choices. Higher prices for food and other essential items will leave less room for discretionary spending. “There’s clearly an effort to stretch the dollar, given that some basic necessities cost a bit more this season,” Brown noted. The contrast between economic perception and actual consumer behavior reflects a mix of prudence and resilience. Although inflation is still weighing on wallets, many Americans are reluctant to let uncertainty dampen the celebrations. You may also be interested in:Although inflation is still weighing on people's wallets, many Americans are reluctant to let uncertainty dampen the celebrations.