This year’s data suggests that consumers in 2025 are taking a more cautious approach to holiday spending than they did in 2024.  Analyzing and understanding this data is important for retailers as they prepare for the holiday season. 

Equifax’s Market Pulse Index is a useful metric to consider consumer financials.  This year, the index value for the average US population is 61.4, marking a decrease across the last four years.  Across all generations, only one saw an increase in Market Pulse Index. 

The Market Pulse Index distills various data points to calculate the final value.  For instance, it measures credit, looking at a consumer’s ability to obtain and manage credit on historic usage and performance.  The index also considers variables like debt, income and assets. 

A decrease in the index suggests that Americans are facing more financial challenges.  This plays a role in how people approach holiday spending.  More and more Americans are turning to early shopping as a way to better manage their holiday purchases.  Buy Now, Pay Later is also a popular option, with 43% of consumers saying that BNPL influences where they shop. 

Being aware of financial challenges and the subsequent changes to consumer behaviors is important for retailers.  During the 2025 holiday seasons, retailers can expect more cautious consumers, and may benefit from promoting early shopping or BNPL options.