Signals & Shifts Report: How Economic Change is Redefining Consumer Expectations

Amid ongoing economic uncertainty, consumers in the U.S. and U.K. are recalibrating their behaviors, priorities, and expectations. Financial caution now cuts across income levels, age groups, and categories, reshaping expectations in every corner of the consumer landscape.

This new report by the PMG team offers advertisers and brands a data-driven view into how sustained economic pressure is influencing decision-making, reshaping brand loyalty, and redefining the meaning of value across markets. Grounded in proprietary research conducted over the last few weeks, this report provides a strategic lens through which brands can better understand—and act on—the evolving dynamics of consumer behavior.

A New Consumer Outlook: Consumers are taking an increasingly pragmatic approach to navigating the latest waves of economic volatility. Rising costs and inflation are prompting immediate, often tactical adjustments in spending and savings behavior. As such, brand loyalty is increasingly contingent on pricing, product availability, and consistent communication.

Generational & Regional Nuances Have Emerged: Expectations for how economic change impacts one's daily life vary across age and income groups. Our research showed that Gen Z consumers, for example, are more likely to shift brand preferences in response to perceived misalignment with their values. At the same time, older adults are responding to the economic realities of today with greater caution and longer-term planning. Regional distinctions—particularly around trade, tariffs, and platform trust—are also growing more pronounced.

People Are Prioritizing Lifestyle Trade-Offs: Today, people are spending differently and reorganizing their daily lives accordingly. Increased time spent at home, reduced engagement with discretionary activities, and a greater focus on financial management are a few trends we analyzed that reflect a broader shift toward self-reliance and resourcefulness.

For a deeper analysis of the forces shaping consumer behavior—and the most important strategic considerations for brands navigating this moment—download your copy of Signals & Shifts today.