Charts: U.S. Consumer Outlook Q2 2025

Every quarter, McKinsey & Company surveys upwards of 100,000 consumers across 18 countries to gauge economic sentiment and its potential effect on spending. The research, called “ConsumerWise, “provides a 360° view of the consumer through the combination of our team of experts and advisors,” per McKinsey.

In April and May, the survey focused on U.S. consumers to assess the impact of tariffs on their attitudes and behaviors. The findings showed that while inflation remains the top concern among consumers, tariffs have rapidly climbed to become the second most cited issue.

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In addition, most survey respondents have either adjusted their spending habits or plan to do so soon, even though the impact of tariffs has not yet materialized in store prices.

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Moreover, consumers who anticipated changing their behavior frequently mentioned less spending on nonessential goods, buying fewer items, or opting for more affordable brands and products.

Charts: U.S. Retail Ecommerce Sales Q1 2025

Retail ecommerce growth in the U.S. lagged brick-and-mortar in the first quarter of this year, according to new data from the Department of Commerce (PDF).  In Q1 2025, total U.S. retail sales — online and in-store — reached $1.86 trillion, a 0.4% increase from Q4 2024, while online sales declined by 0.04% to $300.2 billion.

Ecommerce sales, per the DoC, are for “goods and services where the buyer places an order (or the price and terms of the sale are negotiated) over an Internet, mobile device, extranet, electronic data interchange network, electronic mail, or other comparable online system. Payment may or may not be made online.”

Ecommerce accounted for 16.2% of total U.S. retail sales in Q1 2025, unchanged from the prior quarter.

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The DoC reports U.S. retail ecommerce sales in Q1 2025 grew by 6.1% compared to the same quarter in 2024, while total retail sales experienced a 4.5% annual rise over the same period.

Charts: Consumer Product Trends, Q1 2025

In 2025, most global consumer product executives expect stable prices in the near term. Many believe raising prices won’t drive revenue growth and could lead to retailer resistance while significantly reducing consumer demand. That’s according to Deloitte’s new “2025 Consumer Products Industry Outlook.”

Deloitte’s annual consumer products report assesses the global state of the industry. The firm analyzed the top 100 global consumer products companies by revenue and also surveyed (in October 2024) 250 consumer product executives worldwide at companies with annual revenue of at least $500 million — from food and beverage, household goods, personal care and beauty, and apparel verticals.

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Also, according to the study, almost two-thirds of surveyed executives plan to allocate more of their innovation investments toward creating genuinely new products.

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Most surveyed companies are allocating resources to digital and retail media.

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Moreover, the surveyed executives anticipate marketing and sales will experience the best return on AI investments.

Charts: AI Outlook, Employees vs. Execs, Q1 2025

Employees worldwide are adopting generative AI faster than their leaders expect, according to McKinsey & Company’s January 2025 report, “Superagency in the workplace: Empowering people to unlock AI’s full potential.”

The report examines the survey results of companies’ preparedness for AI adoption. In October and November 2024, McKinsey queried 3,613 employees, managers, and independent contributors and 238 C-level executives.

Eighty-one percent of respondents were from the United States, while the rest represented Australia, India, New Zealand, Singapore, and the United Kingdom. Participants held various roles across business development, finance, marketing, product management, sales, and technology.

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According to the report, 62% of millennials aged 35 to 44 reported strong expertise with AI.

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Public sector, aerospace/defense, and semiconductor workers are less optimistic about AI’s near-term impact. Only 20% expect significant changes to their work in the next year, contrasting with the media/entertainment and telecom sectors, where about two-thirds anticipate significant AI-driven changes.

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Most executives (87%) anticipate generative AI will boost revenue within three years, with half expecting gains above 5%.

Charts: Global Digital Home Trends Q4 2024

Forty-four percent of global household respondents are willing to pay more for a single platform that aggregates all their TV and internet content, 35% are willing to pay to watch sports, and 32% would pay a premium to watch TV without ads.

That’s according to EY’s “Decoding the Digital Home” October 2024 report based on an online survey conducted in July and August.

The survey, carried out for EY’s global technology, media and entertainment, and telecommunications team, gathered responses from 20,000 households across Canada, France, Germany, Italy, South Korea, Spain, Sweden, Switzerland, the U.K., and the U.S.

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According to the EY study, 38% of households in 2022 were concerned about encountering harmful content online. That grew to 44% of households in 2023 and 47% in 2024.

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In addition, the proportion of households in all 10 countries that prefer services from a single provider increased from 2023 to 2024 — the global average rose from 40% to 44%.

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Moreover, most households think connectivity and content providers should offer clearer explanations of how they use AI in customer interactions.