The National Retail Federation, a trade association of retailers, released its predictions for the holiday season on Wednesday.
According to the federation's survey, the average holiday shopper will spend $737.95 on gifts, décor, greeting cards and other holiday purchases, 2 percent less than the $752.24 they actually spent last year.
Overall, spending will increase by a modest 3.9 percent to $602 billion, the survey predicts.
“Though the foundation for solid holiday season growth exists, Americans are questioning the stability of our economy, our government and their own finances,” said NRF President and CEO Matthew Shay. “We expect consumers to set a modest budget for gifts and other holiday related purchases as they wait and see what will become of the U.S. economy in the coming months."
More than half of survey respondants said that the economy would impact their spending.
Most of the cutbacks will come in the "self-gifting" category, or those purchases shoppers make for themselves when they spot a good deal.
Consistent with results from past surveys, about 40 percent of shoppers will start their buying before Halloween, and the average person will do about 40 percent of their shopping online.
Other survey findings: 60 percent of people would like to receive a gift card, 63 percent of tablet owners will use their device to shop and 35 percent say that price is the most important factor when deciding where to shop.