Consumer Spending and Financial Behavior | Summer 2025

As economic uncertainty lingers, U.S. consumers are adjusting their wallets—and their priorities. New research reveals shifting patterns in household spending that signal both caution and confidence, creating challenges and opportunities for brands in 2025.

One trend stands out: restaurants and bars have become the first expense consumers cut when tightening their budgets. Dining out has dropped sharply, with 38% of Americans spending less in this category. Instead, shoppers are protecting spending on essentials, like groceries and household supplies, showing that functional value wins in uncertain times.

But it’s not all cutbacks. Some consumers are willing to pay more for what matters most. An increasing number are opting for premium brands in select categories—rewarding quality, longevity, and social impact over mere price. In fact, the share of shoppers trading up to more expensive brands has quietly grown since late 2023.

Financial juggling is also common. With one in five consumers missing a bill payment last month, and others delaying major purchases like vacations and vehicles, American households are clearly prioritizing short-term flexibility over big-ticket spending.

For marketers, these patterns demand a careful balance. Messaging must reinforce value and financial confidence, while also speaking to consumer aspirations. Brands that can navigate this nuanced landscape—meeting needs without appearing tone-deaf—will earn consumer trust in a complex economic environment.

Consumer sentiment is shifting quickly. Brands that align with today’s careful confidence will capture tomorrow’s growth. Download an excerpt of our full Q2 2025 Economic Tracker excerpt and learn how evolving consumer confidence will shape tomorrow’s growth opportunities.