Consumers Scaling Back Despite Market Gains, According to New Data from Reach3 Insights and Rival Technologies

Back-to-school and holiday spending plans take a hit as Americans and Canadians rethink celebrations, travel, and big-ticket purchases

CHICAGO and VANCOUVER, BC, July 23, 2025 /PRNewswire/ -- Reach3 Insights and Rival Technologies today released a new wave of findings from Trade Winds, their ongoing research initiative exploring how consumers are navigating tariff-related economic uncertainty. The latest data reveals that financial pressure continues to reshape how North American consumers plan to celebrate, shop, and travel in the months ahead.

Consumers across borders continue to hold back on spending
According to the latest research in the United States and Canada:

• 32% of Americans and 29% of Canadians expect to spend less on holidays or celebrations this year.
• 27% of Americans and 25% of Canadians plan to reduce back-to-school purchases.
• 61% of Americans and 55% of Canadians say they are unlikely to make a big-ticket purchase in the next few months.

"Despite the recent U.S. stock market rally, stress, anxiety, and financial strain continue to show up in nearly every facet of consumer life," said Matt Kleinschmit, CEO and Founder of Reach3 Insights. "From travel and gifting to major household purchases, these results give brands across industries an early signal that traditional seasonal shopping patterns may look very different this year."

Celebrations get scaled down
Rising prices, tighter budgets, and shifting priorities are driving consumers to simplify—or even skip—special occasions. In the U.S., 42% of Americans have already changed how they celebrate birthdays, holidays, and other events. In Canada, 41% report similar shifts, primarily due to cost concerns or a preference for lower-pressure gatherings.

Travel plans grounded by cost, safety, and uncertainty
While nearly half of Americans (49%) and two-thirds of Canadians (66%) still hope to travel this year, most are staying closer to home. Domestic trips far outnumber international ones, with many citing planning challenges, geopolitical risks, and rising travel costs. Notably, 71% of Americans and 62% of Canadians say they haven't changed their travel plans specifically due tariffs—suggesting that financial strain, not policy alone, is influencing behavior.

Big-ticket purchases on pause
Consumers in both countries are also delaying large purchases. The top reasons include high prices, budget caution, and overall economic uncertainty. Those still planning to spend are prioritizing practical categories like home repair, furniture, and experiences—rather than luxury items.

"People are feeling the squeeze but aren't always blaming tariffs directly," said Varun Jog, Research Director at Reach3 Insights and lead researcher on the study. "What we're seeing is a broader recalibration of priorities, and that has major implications for marketers heading into the fall and holiday seasons."

Real-time insight into a shifting economy
Trade Winds combines mobile-first, chat-like surveys and in-the-moment video feedback from a nationally representative insight community in both the U.S. and Canada. Powered by Rival's conversational research platform, the study captures consumer emotions, behaviors, and attitudes with greater immediacy and depth than traditional methods.

To explore the latest findings or sign up for future updates, visit: https://www.reach3insights.com/trade-winds

About Reach3 Insights and Rival Technologies 
Reach3 Insights and Rival Technologies are pioneers in conversational research and the leading authority on insight communities. Rival's mobile-first, conversational platform transforms conventional surveys into personalized, engaging research experiences that emulate the way people communicate today. Reach3 is an award-winning full-service consulting firm that uses immersive, real-time research designs and dynamic digital storytelling to deliver deep experiential insights. Amplified by AI, Rival and Reach3's conversational research approach delivers higher response rates, deeper engagement, and faster time-to-insights.

To learn more, visit rivaltech.com or reach3insights.com.

Contact Information
Marie Melsheimer
+1-541-815-3951
[email protected]

SOURCE Reach3 Insights and Rival Technologies