US Consumers Sharply Adjust Finances Amid Rising Cost Concerns
Event summary
- 66% of Americans are actively managing their spending and savings weekly, a significant shift in financial behavior.
- 88% of Americans have made at least one meaningful adjustment to their financial behavior, up from 79% in 2025.
- Consumer confidence has declined across all income levels, with optimism falling from 26% to 20% year-over-year.
- Healthcare costs are now a top financial concern for 30% of Americans, up from 22% in 2025.
- Gen Z is leading the charge in supplemental income generation, with 49% taking on additional work.
The big picture
The KeyBank survey highlights a significant shift in American consumer behavior, driven by persistent inflation and economic uncertainty. While proactive adjustments demonstrate resilience, the decline in consumer confidence and focus on essential expenses signals a potential drag on broader economic growth. This trend underscores the need for financial institutions to adapt their offerings and provide support to consumers navigating these pressures.
What we're watching
- Spending Habits
- The sustainability of these cost-cutting measures remains uncertain, as consumers may eventually revert to pre-inflation spending patterns if economic conditions improve, potentially impacting retail sales.
- Side Hustle Trend
- The prevalence of side hustles, particularly among Gen Z, could indicate a long-term shift in workforce dynamics and income generation strategies, impacting traditional employment models.
- Healthcare Costs
- The rising concern over healthcare expenses will likely continue to pressure household budgets and may necessitate policy interventions or shifts in healthcare consumption patterns.
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