Christmas Sentiment Pulse 2025: How Aussies are feeling and spending this year

The Fifth Quadrant Christmas Sentiment Pulse 2025 paints a picture of stability in overall mood, ongoing financial pressure in many households, and a clear divide in spending intentions as Australians head into the festive season. Happiness levels have remained broadly steady over the past year, although the stability masks widening differences. Gen X and lower-income households are reporting lower levels of happiness, while older Australians and those in higher-income brackets continue to experience stronger wellbeing. The national mood may appear unchanged, but sentiment varies meaningfully across demographic groups.

Financially, 63% of Australians say they are either comfortable or managing, leaving just over one-third facing more strain. Within this group, 10% do not have enough to cover all household expenses, highlighting the continued pressure many families face. Unsurprisingly, financial vulnerability remains closely tied to lower wellbeing, with emotional strain increasing as financial comfort declines.

Looking ahead to the next 12 months, cost pressures remain the dominant concern for households. Rising energy bills and the affordability of essential products continue to weigh heavily, and while some areas have eased slightly, concerns around debt and job security are gradually increasing. These issues are present across all financial segments, though the intensity of concern rises significantly among those with tighter budgets.

Despite these pressures, Australians plan to spend 11% more on Christmas gifts in 2025. This growth is being driven almost entirely by comfortable and managing households, who are increasing their budgets by double digits. In contrast, those who are surviving or barely coping are reducing their Christmas spending by 6% and 4% respectively, reflecting the uneven financial footing across households. Generational patterns reinforce this divide: Millennials are set to lift their Christmas spend by 23%, while Gen Z stands out as the only group reducing their budget, down 5%. Gen X and Boomers are planning smaller increases of 8% and 3%.

Post-Christmas spending tells a similar story. Overall, Australians plan to spend 5% more during the Boxing Day and New Year sales period, but this growth is concentrated among the most financially secure. Comfortable households intend to increase their spending by 28%, while managing households remain relatively flat and financially vulnerable groups expect to cut spending further. The result is a clear divergence in discretionary activity heading into the summer sales period.

As we head into the festive season, the findings remind us that not all Australians are experiencing Christmas in the same way. While many households are feeling stable and able to spend, others are still managing tight budgets and heightened financial pressure. It’s an important moment to stay mindful of those around us who may be finding this time of year more challenging and to look out for friends, family, colleagues, and community members who might need a little extra support.

Season’s greetings from all of us at Fifth Quadrant, may this Christmas period be one where kindness is shared generously and no one feels left behind.

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