One of the compounding challenges to economic uncertainty, as a business owner or manager, can be how your customers respond to it. And, as a consumer yourself, it makes sense, right? When prices may spike, spending less is wise. But that doesn’t necessarily bode well for businesses that rely on that clientele.

With economic uncertainty in our midst, what are some spending trends to look out for this year? In this issue of the Pulse, we take a look.

Are consumers looking to cut back?

There are some indications that consumers are slowing down their purchasing habits. For example, consumer credit utilization rates dropped towards the end of 2024. Likewise, the Bain’s Consumer Health Index noted a 10.8% drop in intent to spend among even high earners, or those whose incomes are $150,000 or more. The Kearney Consumer Stress Index found that the majority of consumers are stressed about prices and inflation, especially when it comes to groceries.

It’s not just big data points discussing this, either. In January, a Washington Post article examined a trend called “No Buy 2025.” Whether or not the majority of consumers are making a conscious effort to spend less, the idea of this shows a pattern towards anxiety over consumption.

Credit card delinquency is at a high.

Another sign that spending may slow down are credit delinquency rates. In the United States, even amongst high earners, consumer delinquency rates are “near a five-year high, rising 130% over the last two years from January 2023 to December 2024.”

This could mean that consumers are more likely to be cautious with purchases made on credit.

Which industries may feel the heat?

As with any period of economic uncertainty, some industries are going to feel the consumer hesitancy more than others. For example, restaurants or other food service businesses may want to keep in mind that 81% of Americans say saving money on food is a priority for them in 2025. Essentially, anything that could be considered “discretionary spending” is potentially at risk.

What does this mean?

To weather a potential downtrend, in 2025, businesses should look into sustainable strategies to keep costs low and avoid layoffs or raising prices. The latter, especially, certainly will not make consumers more likely to spend in this climate.