What are the Top Economic Concerns for Today's Consumers?

In today's rapidly changing economic landscape, understanding consumer concerns is more critical than ever. PDG Insights recently conducted the first wave of its 2025 Diverse Consumer Pulse study, an in-depth analysis of consumer attitudes and perceptions across different demographic groups, providing valuable insights into the shifting priorities of Black, Latino, and General Population (Gen Pop) consumers. The data, fielded quarterly, reveals significant trends that can help businesses and policymakers address these issues more effectively.

Overall, American consumers are expressing more concern across a variety of economic issues than they did in December 2024. When looking at things like total cost of living and inflation, unemployment, interest rates, the housing market, as well as tax and trade policies, 82% of Gen Pop consumers said they were concerned about these issues in March 2025. This is up significantly from 75% in December of 2024

Latino consumers express more concern than their Gen Pop counterparts at 84%, while Black/African American consumers expressed a similar degree of concern. However, in December 2024, Latino and African American consumers were significantly more likely to express concern, and that margin of difference has completely dissipated in the last three months.

Rising Inflation and Overall Cost of Living Lead Concerns

Nine of ten consumers say they are concerned about rising inflation and the overall cost of living. This remains consistent regardless of race and ethnicity and were the top two concerns in December 2024 as well.

There was a notable increase in concern among Gen Pop consumers about the overall cost of living, up from 84% to 89%. Latino consumers showed more concern about rising inflation and increasing prices of goods and services, up from 86% in December to 91% in March.

Black/African American consumers showed high concern 88% for both issues, down slightly compared to December 2024.

Interest Rates and Their Impact on Ability to Borrow or Save

Interest rates are a critical issue for many consumers. In December 2024, Latino and Black/AA were significantly more likely to be concerned about interest rates than their Gen Pop counterparts (82% vs. 74%). However, in our recent March study, we see Gen Pop consumers concern increase to 80% while Latino and Black/AA consumers hold steady.

Trade Policies, Including Tariffs and Trade Agreements

Trade policies have become a growing concern in a quickly evolving and highly public economic dialogue in 2025. In December, we saw again that diverse consumers were significantly more likely to be concerned about trade policies than their Gen Pop counterparts. However, in the past three months, we saw significant increases in concern among all three consumer targets. Gen Pop consumers’ concern increased from 74% to 83%, and Black/AA consumers jumped six points to 85% from 79% in December. Latinos saw the smallest increase in concern, increasing from 80% in December 2024 to 85% in March 2025.

Tax Policies and Their Impact on Personal Finances

Tax policies and their impact on personal finances remain a significant concern for consumers. According to the data, Black/AA consumers' concern about tax policies increased slightly from 81% in December 2024 to 84% in March 2025. Latino consumers' concern increased from 82% to 85%, while Gen Pop consumers' concern saw the largest increase, jumping from 80% to 86%. These trends highlight the varying levels of anxiety across different demographic groups regarding potential changes in tax deductions and higher taxes, underscoring the need for clear and equitable tax policy communication.

Unemployment and Job Availability

Unemployment and job availability are critical issues affecting consumer confidence. The data reveals that Black/AA consumers' concern about unemployment decreased from 78% in December 2024 to 74% in March 2025. However, among Latino and Gen Pop consumers there was a drastically different trend. Latino consumers’ concern increased from 72% to 82%, while Gen Pop consumers' concern increased from 64% to 72%. These shifts indicate a growing apprehension among Latino and Gen Pop consumers about job security or availability, while Black/AA consumers show a slight decrease in concern, the reality is about three out of four still have concerns about unemployment.

Stock Market Performance

The stock market performance and investment returns are vital indicators of economic health and consumer sentiment. Regardless of race or ethnicity, consumers expressed a significant increase in concern about stock market performance. The data shows that Black/AA consumers' concern about the stock market increased from 68% in December 2024 to 75% in March 2025. Latino consumers' concern increased from 69% to 75%, while Gen Pop consumers showed the largest jump in concern, up almost 20% over three months, with 76% expressing concern in March compared to 64% in December. These trends suggest heightened awareness and anxiety about market volatility and investment risks.

Conclusion

The 2025 Diverse Consumer Pulse study by PDG Insights highlights the growing economic concerns among American consumers across various demographic groups. The data reveals significant increases in anxiety about inflation, cost of living, interest rates, trade policies, tax policies, unemployment, and stock market performance. These trends underscore the need for businesses and policymakers to address these issues proactively and equitably. By understanding and responding to these concerns, we can better support consumers and foster a more stable and resilient economic environment.