From CNBC: 2025-04-25 12:47:00

consumers are rushing to make ahead of potential tariff-related price hikes. While car sales surged in March, other retail sectors saw lower spending and delayed purchases. The auto industry is seeing a significant increase in showroom traffic and sales due to fears of higher prices. Automakers and dealers are benefiting now, but concerns remain about future sales once tariff-free inventories run out. Consumers reported making early purchases due to tariffs, with nearly 12% buying cars sooner, 10% purchasing furniture earlier, and 9% buying large electronics ahead of schedule. However, there hasn’t been a significant stockpiling of items like paper towels or clothing. Walmart noted more volatility in sales patterns due to factors like consumer sentiment and weather.

Tariffs have led consumers to delay purchases and seek deals, with more people being price-sensitive and migrating to online or larger retailers. Airlines have seen weakened demand, with carriers offering fare sales to fill seats and trimming schedules. Executives attribute the decline in airfare to factors like economic uncertainty and the trade war.

High-end travel demand remains strong, with first-class and premium economy flights seeing resilience. Domestic airlines are facing challenges due to weaker demand, causing a decline in unit revenue. Some airlines have pulled their 2025 financial outlook due to uncertain economic conditions, with a focus on maintaining profitability amidst changing consumer behavior. Consumers are hoarding cash due to uncertain financial future, delaying purchases like kitchen remodels. Dallas resident Tiffany Armstrong postponed her remodel until pricing is clear, but made exception for new iPhone purchase. Ironically, the iPhones were exempted from tariffs days later, highlighting challenges for consumers and businesses in planning.



Read more at CNBC: Car purchases rise, consumer spending slows