• by Ray Schultz , Columnist, June 2, 2025

Email teams selling luxury items have reason for concern. Consumers are pulling back on their spending, apparently due to fears over tariffs and the economy, judging by the 2025 Consumer Sentiment Study from Alter Agents.

Those polled say they will: 

• cut any unnecessary spending — 45%
• reduce the number of tunes they dine out — 36%
• postpone major purchases (car, electronics etc.) — 25%
• reduce the use of utilities — 24%
• postpone or cancel vacations — 20%

Contrary to what you might think, Gen Z is far more likely than older generations to say they understand the economy. For instance, 44% say they are knowledgeable about economics and 38% say the same concerning tariffs, but only 56% could correctly define tariffs, compared to 78% of Gen X. 

Nevertheless, 30% of Gen Z made large purchases before tariffs took effect, 23% changed their stock portfolio/other investments and 20% moved their money out of banks, greatly outpacing Gen Xers in all these actions. 

On the gender level, 47% of men have positive feelings about their financial situation and are likely to to focus on taking advantage of the economy.

In contrast, 31% of women rate their finances positively and are more likely to concentrate on saving.  

How do consumers in general rate the economy? They expect that:

• prices for everyday items will go up — 60% 
• prices for larger purchases will go up — 53%
• the stock market will go down — 41% 
• unemployment will rise — 35%

Meanwhile, faith in government has eroded: 29% trust the federal government, down from 38% in 2024. And 38% trust their local government, versus 48% last year.  

Only 33% believe American Democracy is working well, while 28% feel the tone of our political debate is appropriate.

And a mere 27% say social media has a positive influence on our political process. 

Rebecca Brooks, CEO of Alter Agents, sums it up by saying consumers are “adjusting quickly and strategically to what they anticipate will be a tough year financially. Brands that reward loyalty, provide real value, and demonstrate they care about their customers will come out ahead." 

Brooks adds: “Brands that want to thrive in this environment must be proactive, supportive, and strategic in how they connect with their customers."

Alter Agents surveyed 1,004 consumers.