The U.S. economy has been a mixed bag so far in 2025, with stock market volatility and tariff anxiety largely overshadowing positive employment and inflation data. One central theme is that uncertainty has made many consumers wary of spending money on big-ticket items like homes and cars.
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More than one-third (35%) of Americans have delayed or canceled plans for a big purchase this year, according to a new survey of 1,000 U.S. adults from Guardian Service, a Raleigh, North Carolina-based insurance agency.
Nearly one-quarter (22%) said they would delay or cancel buying a home. Another 8% said a car, while 5% said both. More than half of respondents (63%) cited economic uncertainty as the main reason. Many also cited high interest rates (57%) and high prices (55%).
If these trends continue, they’ll likely have a negative impact on the overall economy, experts say. GOBankingRates explore these financial trends more and break down that that means for the economic landscape.
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Recession Fears
“Across the country, Americans are second-guessing big purchases, dialing back on long-term dreams and even downgrading essential protections like insurance,” Guardian Service noted in a Jun. 3 report. “The rising cost of living and fears of a looming recession are making many feel like they’re walking a financial tightrope.”
That tightrope is partly the product of President Donald Trump’s tariff plans, which have roiled the stock markets and led to fears of trade wars and inflation. Trump has dialed back or delayed his tariff plans on several occasions, temporarily calming the nerves of both investors and economists.
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But there’s still a lot of uncertainty surrounding tariffs. Until the picture is clearer, many Americans have reined in their spending plans.
An April report from Real Estate News noted that economic uncertainty and rising mortgage rates have caused many potential homebuyers to put on the brakes.
“A lot of buyers, especially first-timers, are backing off because they’re nervous about a potential recession,” Redfin Premier agent Venus Martinez said a weekly report.
Will Auto Sales Move Lower?
In the Guardian Service survey, 12% of respondents said they’ve downsized their idea of a “dream home.” Younger Americans have also raised the ages at which they expect to afford their first home.
Meanwhile, a recent report from S&P Global indicated that May might be the last month of the year when auto sales increase on a yearly and monthly basis.
“Given the swirling tariff, consumer and auto inventory conditions, the expected May 2025 auto sales result will likely be the last period this year to post positive growth in year-ago and month-prior comparisons,” said Chris Hopson, principal analyst at S&P Global Mobility.
“Shifting tariff policies have automakers scrambling to produce vehicles while they can, but uncertainty abounds in the immediate term, and upcoming monthly sales levels are expected to decelerate further.”
Consumer Skittishness Equals Bad Economic News
A slowdown in home and auto sales would have a negative impact on the U.S. economy simply because consumer spending plays such a big role in economic growth.
“Consumer resilience helps keep the economy on track,” U.S. Bank noted in a May 28 report, adding that during the 2025 first quarter, Personal Consumption Expenditures accounted for more than two-thirds of the nation’s gross domestic product.
How current U.S. policy and economic trends will play out is uncertain, but Americans can lean on sound financial advice and robust money habits to protect their wallet in the mean time.
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This article originally appeared on GOBankingRates.com: More Than One-Third of Americans Have Canceled or Delayed Big Purchases in 2025: Here’s Why and What It Could Mean for the Economy
