The importance of understanding consumer sentiment in 2025

Editor’s note: Sam Killip is the VP of customer success at Attest.

Confidence in the government’s economic policy is low with only 29% of consumers saying they feel confident about spending right now. Sentiment towards the government in general is fairly negative, with 44% of Americans feeling negative about the country’s leadership, while 29% feel positive (the remainder are on the fence).

Uncertainty around the economy is effecting consumer confidence, especially among specific demographics. Attest’s Consumer Trends Report shows that women, lower earners and older consumers lack confidence to spend based on plans for the economy (registration required).

Only 23% of female consumers are reassured to spend while most women are feeling heightened levels of financial insecurity, with 45% stating they feel financially insecure compared to 33% of men. As a result, female consumers are more likely to be keeping a tight grip on their wallets. Six in 10 women say they are currently spending “cautiously,” in comparison to four in 10 men. Since last year, there has been a 7% increase in cautious spending among women, perhaps showing the effects of an election year.

Baby Boomers’ perception is worse than their reality

Polled as Trump prepared to take office, consumers aged 60-67 had the dimmest view of the government, with 48% expressing negative sentiment (compared with 41% of Gen Z). They are the least confident about spending based on economic policy; only a quarter feel reassured to spend.

Baby Boomers’ negative outlook has led to widespread cautious spending. Nearly 70% say they’re currently spending cautiously, including 27% who are spending “very cautiously”. Despite their perception of a fragile economy, older consumers aren’t actually facing greater financial difficulties than other age groups. In fact, 42% of Baby Boomers report being financially secure and only 32% state they are financially insecure. Still, their lack of faith in the economy is affecting their behavior, with a 12% reduction in online shopping and a 14% dip in receptivity to frequent e-mail marketing.

There has also been a notable shift in what Baby Boomers want to hear from brands. Desire for humorous messaging has declined by 10.5%, while appetite for reassuring messaging has increased by 9%.

High and low earners divided on economic plans

Not everybody is predicting doom and gloom for the economy. When considering the government’s economic plans, higher earners – consumers with an income of $100,000 or higher – feel pretty good about spending. Just over 42% of high earners feel confident to spend, outweighing the 32% who feel unconfident. But, when looking at consumers who have a lower household income, that confidence plummets to just 27%.

Consumer confidence has grown among high earners since last year, evidenced by a 6% increase in spending “freely” and a 7% decline in “cautious” spending. This shift has tipped the scales, with these consumers now more likely to be spending freely than cautiously.

Overall, higher earners report feeling financially secure: 63% versus only 34% of lower earners. With Trump pledging to maintain lower rates of tax and increase deductions benefiting higher earners, it’s clear that consumers are already making assumptions about who the winners and losers will be.

Adapting to changing consumer confidence

When targeting consumers with differing levels of confidence, brands must take distinct approaches. We note some vastly divergent behaviors between consumer groups. For example, while high earners show a preference for shopping online, lower earners prefer stores. Meanwhile, higher earners are almost twice as likely to use AI tools for assistance when shopping.

Differences in sentiment can affect everything from likelihood to interact with brands on social media and openness to advertising to where and how consumers shop. At times of change – like when a new government comes to power – it’s even more important to carry out consumer research.

With Trump preparing for sweeping actions around immigration, tax, education, security and social policies, brands will need to keep a close eye on how their consumers respond.

Methodology

All figures within this article are taken from research conducted on the Attest platform. The total sample size for the 2025 US Consumer Trends Report was 2,000 nationally representative working-age consumers based in the United States. The survey concluded on November 14, 2024. The full report can be found here and the research dashboard is available here.