Many consumers find themselves pressured by inflation as the holiday season approaches, according to a new report from economic research firm PYMNTS.

The analysis, which found that some 60% of Americans are living paycheck to paycheck as of last month, said that “decreased spending capacity” is the reality consumers are most likely to reference as their main deterrent from spending this holiday season. Roughly four in ten see themselves as worse off financially relative to this time last year.

“Many consumers expect to spend less during this holiday season for a variety of reasons, with decreased spending capacity and more conservative spending the most likely reasons cited as chief deterrents,” the report said. “Consumers who live paycheck to paycheck with issues paying bills are the most likely to cite reduced spending capacity as the most important reason.”

Even as 60% said a reduced capacity for spending would prompt lower expenditures, another 23% said they would decrease expenditures by pursuing more conservative financial behavior.

Some 32% of consumers plan to use credit as they spend for the holidays, according to the report, marking a decrease from 37% last year. Older millennials are the most likely to decrease reliance on credit cards and reduce the share of purchases they finance; members of the age cohort are “either cutting back on holiday spending or using other means to pay for their holiday spending, such as tapping into savings or borrowing from friends and family.”

Beyond the use of credit, roughly 37% of consumers indeed said they would use savings to pay for holiday expenses: 16% plan to use “half or more of their savings to cope with holiday purchases,” while 21% will use “less than half” of their available funds.

Inflation has rattled American consumers in the years after the lockdown-induced recession. The analysis of expected holiday consumer behavior comes shortly after the American Farm Bureau Association revealed that Thanksgiving this year will be the second most expensive in the four decades they have been monitoring food prices. The organization found that the cost of the feast for the typical family of ten will be slightly over $61.17 this year; average prices, which have moderated since last year, have still witnessed a sustained increase from $48.91 in 2019.