43% of US Consumers to Spend Less on Holiday Season Jewelry

(IDEX Online) - Forty-three percent of US consumers say they're planning to spend less on jewelry this holiday season, according to new research from McKinsey & Company.

Only 18% said they planned to spend more, while 39% expected to spend about the same.

In "An update on US consumer sentiment: Holiday budgeting begins," McKinsey says jewelry recorded a "net spending intent" of minus 25%, calculated as the 18% planning to spend more minus the 43% planning to spend less.

The findings come from the consultancy's latest research into US consumer sentiment and holiday spending, based on a survey conducted from July 29 to August 5. McKinsey did not disclose the number of respondents.

Jewelry was among the discretionary categories facing the sharpest pullback in spending intentions.

The findings suggest that jewelry retailers are heading into the holiday season with consumers maintaining relatively steady overall holiday budgets but becoming increasingly selective about where they spend them.

Across all spending categories, 47% of consumers said they expected to spend about the same during the 2026 holiday season as last year, while 23% planned to spend more and 21% planned to spend less.

Accessories recorded a net spending intent of minus 30%, the second-lowest figure among the 22 discretionary categories surveyed, behind home decor at minus 32%.

McKinsey said consumers were pulling back across discretionary purchases even while maintaining relatively steady overall holiday spending.

That suggests competition for the consumer's holiday dollar could be intense, with jewelry competing not only with other jewelry but with apparel, electronics, travel, entertainment and other discretionary purchases.

There were some more encouraging signs for the jewelry sector. Gen Z consumers showed comparatively greater planned spending on jewelry and accessories than older generations.

Meanwhile, Bain & Company, the global management consulting firm, forecasts US holiday retail sales of a record $1.016 trillion for November and December, up 4.5% year on year.

But Bain said more than half of that nominal increase is expected to come from inflation rather than higher unit sales.

It forecasts in-store sales to rise 2.5%, while nonstore sales, including e-commerce and mail order, are expected to increase 9%.

For jewelry, the contrast is striking: the overall US holiday market is expected to grow, while McKinsey's consumer research indicates that jewelry is facing a significant pullback in spending intentions.