Survey: With recession fears, consumers focused on price in 2025

More than half (52%) of consumers report that rising costs will significantly impact their purchasing behavior in 2025.

A majority of consumers say they have fears of a recession in the new year.

That’s according to a new survey from artificial intelligence partner First Insight, which revealed that nearly six-in-10 (57%) consumers are worried about a recession in 2025, with Gen X leading at 65%. The fears come as 55% of consumers express confidence in their financial situation.

In the new year, 62% of consumers cite price as what will be the most influential factor in their purchasing decisions. However, younger generations are less price-driven, as just 56% of Gen Z and 55% of millennials list price as their top priority, compared to 71% of boomers and 68% of Gen X. Gen Z (34%) is the most confident about their personal finances, while Baby Boomers (21%) report the least confidence.

Overall, more than half (52%) of consumers report that rising costs, including tariffs, will significantly impact their purchasing behavior. A quarter (25%) of those surveyed plan to reduce the number of items they purchase in 2025 in response to rising costs.

"In 2025, companies face a balancing act," said Greg Petro, CEO of First Insight. "As consumers grapple with an uncertain economic outlook, they are demanding lower prices while still expecting smarter, more personalized experiences. Companies that embrace AI to deliver affordability alongside tailored solutions will not only navigate this challenging landscape but will also seize the opportunity to foster loyalty, drive growth, and stay ahead of the competition."

First Insight’s survey also revealed that AI is continuing to grow in popularity among consumers. Forty percent of consumers have interacted with AI-driven tools like chatbots (56%) and personalized recommendations (47%). Among AI users, 75% agree that AI improves their purchasing experience, with Gen X (79%) and millennials (78%) leading in satisfaction.

More than six-in-10 (63%) Gen Z consumers report satisfaction, signaling room for improvement in aligning AI with younger shoppers. Sixty-eight percent of boomers say AI tools have no impact on their purchasing decisions.

First Insight’s study was conducted online among a nationally representative sample of 1,131 U.S. consumers on Jan. 3, 2025.