Context:

American consumers are adapting their spending habits in response to economic uncertainty and tariffs announced by President Donald Trump, as highlighted by a recent KPMG survey. The survey, conducted in April, reveals that 68% of respondents are reluctant to incur additional debt, with many delaying significant purchases like cars and opting for cost-saving measures such as ad-supported TV instead of ad-free streaming services. Generative AI is increasingly impacting both personal and professional lives, with 45% of individuals acknowledging its significant influence. Additionally, attitudes toward higher education are shifting, as half of the respondents believe a traditional degree is no longer necessary for a well-paying job, favoring alternative skill-building methods. This shift in consumer behavior is attributed to the lessons learned from the pandemic and current economic challenges, prompting faster adaptation to financial strategies and cost control.

Dive Deeper:

• KPMG's American Perspectives survey, conducted with 2,500 adults, highlights a shift in consumer behavior due to Trump's tariffs and economic uncertainty, with many respondents delaying major purchases to avoid debt.

• About 68% of those surveyed expressed a reluctance to take on more credit, while 43% indicated plans to delay car purchases, reflecting a cautious approach toward financial management in uncertain times.

• Consumers are seeking cost-effective alternatives, with 70% opting for free ad-supported TV over more expensive ad-free streaming services, indicating a broader trend of budget-conscious decision-making.

• Generative AI is becoming a significant force in daily life, with 45% of respondents noting its impact on both personal and professional spheres, marking an increase from previous years.

• Public perception of higher education is evolving, as half of the respondents now view a degree as non-essential for a well-paying career, instead emphasizing apprenticeships and technical training.

• The survey underscores a faster adaptation to financial strategies post-pandemic, as consumers quickly implement spend-smart initiatives and cost control measures.

• KPMG's findings suggest that the pandemic experience has equipped consumers with better tools for navigating economic challenges, leading to more proactive and informed financial decision-making.