Global Consumer Confidence Drops Amid Inflation, Job Concerns in 2025

In 2025, consumer sentiment varies globally amid economic challenges and inflation concerns. In the U.S., optimism is growing with declining inflation expectations and improved labor market confidence, although food prices remain a concern; the Federal Reserve is expected to maintain interest rates steady while monitoring inflation trends. Visa's chief economist forecasts slower U.S. GDP growth around 1.3%, attributing it to demographic shifts and labor force limitations, with long-term growth prospects constrained by aging populations and immigration trends. In India, despite a strong GDP growth driven by private consumption and tax incentives, nearly half of households plan to restrict spending to essentials due to rising costs of necessities, reflecting a split in consumer spending behavior. Irish consumers face financial insecurity heightened by recent U.S. tariff announcements, leading many to reduce purchases and prioritize price, though in-store shopping remains dominant and online retail is growing, particularly among younger shoppers. Meanwhile, Filipino consumers show increased pessimism due to inflation, income declines, and job concerns, mirroring negative sentiments seen in other major economies; the Bangko Sentral ng Pilipinas emphasizes coordinated efforts to manage inflation and support employment to bolster confidence.