Most U.S. consumers are pessimistic about the economy as the holiday shopping season nears, with 57% expecting it to weaken, according to Deloitte. This is the most negative outlook since 1997. Consumers plan to spend less on average ($1,595) due to higher prices and economic uncertainty, with younger shoppers cutting back the most.

Gen Z and Millennials plan to spend significantly less this holiday season, while Gen X and Baby Boomers anticipate spending slightly less or more. Factors like economic instability and inflationary pressures contribute to younger shoppers feeling more uncertain about their spending plans during the festive season.

Holiday spending is expected to rise by 4%, lower than the 10-year average of 5.2% growth. Online holiday spending is projected to grow by 5.3%, slower than the previous year’s increase of 8.7%. Gen Z consumers are expected to spend 23% less than last year, with overall spending down by about 5% compared to the previous holiday season.

Consumers plan to seek value this holiday season, with a focus on deals and cutting back on non-gift holiday expenses. Despite planning to buy fewer gifts and spend slightly more on gifts compared to last year, consumers are watching their budgets carefully and adjusting their holiday spending habits accordingly.

Read more at CNBC: U.S. consumers expect high prices, weak economy, Deloitte survey says