What's happening:
Economic uncertainty has reshaped the way people spend, and the shifts are less about stopping purchases altogether than about becoming more intentional. Most consumers say they are now either more thoughtful or more cautious overall with their money than they were just a few years ago. Rising everyday costs like groceries are the clearest signal of the economy’s health for most people, pushing shoppers to plan purchases more carefully, look for deals, and find ways to stretch value. Still, this doesn’t mean people have abandoned indulgence altogether. Instead, they are rebalancing by reducing everyday spending in areas like dining out, apparel, or home goods, but still choosing to indulge selectively, especially when it comes to food, travel, or self-care.
What we found:
- Compared to a few years ago, most respondents say they are either more cautious and cutting back overall (43%) or more thoughtful and intentional (40%) about spending.
- The price of groceries is the top indicator of economic health for 35% of consumers, far ahead of any other measure.
- To manage costs, many are shopping around (46%), waiting for sales (45%), and leaning on loyalty programs (43%).
- Consumers are scaling back most in dining out, apparel, and technology/electronics, with an average of 36% indicating they have spent less on these categories over the past year. However, many of these categories are still seen as areas for occasional indulgences, with food/dining (50%), clothing/fashion (34%), and travel (29%) being the most popular ways respondents would be likely to treat themselves.
Why it matters:
Consumers are approaching spending with a sharper sense of intention, weighing where to cut back and where to indulge. Essentials need to prove their worth with clear value and reliability, while discretionary categories need to justify themselves as meaningful or rewarding. For brands, the opportunity is to align with both sides of the equation, making everyday spending feel smart and dependable while framing indulgences as experiences that are justified, meaningful, and rewarding.
(N=944, MoE ±3.2%, 95% CI,
Data Collected: August 8-10 2025)
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