Advertiser Disclosure

5 Ways Recession Fears Have Impacted America’s Spending Habits

May 30, 2025

3 min Read

Written by Vance Cariaga

Edited by Cory Dudak

Confused Client Thinking What to Buy in a Supermarket stock photo

nicoletaionescu / iStock.com

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Fears of a looming recession have cast a shadow on the U.S. economy for much of 2025, largely due to President Donald Trump’s wide-reaching tariff plans. Those worries eased somewhat following a recent trade deal between the U.S. and China that brought hopes an all-out trade war can be avoided.

However, many financial and economic experts continue to issue warnings of a possible economic slowdown — including J.P. Morgan. A month ago, the investment banking firm put the probability of a recession at 60%. It has since lowered that probability to a “toss up,” Fortune reported. Even so, J.P. Morgan Chief U.S. Economist Michael Feroli warned in a note that “recession risks are still elevated.”

The prospect of a coming recession has already changed some of the country’s spending habits, according to a new report from CouponFollow, which helps shoppers save money by offering verified coupon codes and deals from thousands of online retailers.

CouponFollow surveyed more than 1,000 U.S. adults to gauge how they’re responding to economic uncertainty in 2025. One thing it found is that more than half (56%) of Americans have already started cutting back on spending due to recession concerns.

Here are five ways recession fears have impacted American’s spending habits, according to the survey.

Less Spending Overall

While 56% of respondents said they have already cut back on spending to prepare for a recession, another 21% said they plan to cut back and 9% said they might. Items they have cut back on include clothes, travel, transportation, medical/dental care, streaming services and fitness memberships.

Today's Top Offers

Skimping on Groceries

More than four in ten Americans (43%) have either bought fewer groceries or limited quantities of the groceries they normally buy. Forty percent have switched to store-brand products, while 38% are using coupons or discount codes more often.

Dining Out Less Often

Nearly two-thirds (62%) of Americans have dined out less often or ordered less takeout due to recession fears. More than half (54%) are cooking at home more often.

‘Pretend’ Spend

More than one-quarter (26%) of those surveyed have been “pretending” to spend normally, even though they’re cutting back. Gen Z consumers are the most likely to do this, at 40%.

Dipping Into Savings

In order to cover everyday expenses, 29% of Americans have withdrawn money from their savings over the past six months. Here’s how it breaks down by generation:

Gen Z: 28%
Millennials: 28%
Gen X: 33%
Baby boomers: 21%

More From GOBankingRates

Sources