EY-Parthenon Consumer Sentiment Survey shows households adapting to higher living costs while long-term anxiety grows

Consumers adapt to higher costs through value-seeking behaviors and budget reallocation as long‑term financial anxiety deepens.

New York, April 9, 2026 : EY-Parthenon practice today released findings from Wave 4 of its Consumer Sentiment Survey, revealing that consumers are increasingly adjusting to the high cost of living, even as stress and uncertainty about the future deepen. One in four consumers remain concerned about their finances long term and have continued to pull back spending across entertainment, dining, apparel and beauty.

The survey, fielded between February 23 and March 2 among more than 1,500 US consumers, highlights how households are managing expenses, shifting spending priorities and navigating broader economic pressures. The survey also explores how the implications of demographic shifts across the US are transforming consumer products and retail markets.

“Consumers are finding ways to manage their monthly budgets more effectively, even in a high‑cost environment,” says Mark Chambers, EY Americas Retail Sector Leader. “With consumer behavior, demographics and labor trends all in flux, retailers are creating more purpose-driven baskets and reviewing their format and location mix to stay competitive.”

Key findings from Wave 4 of the survey include:

• Essential spending rises as entertainment pulls back: Essential purchases such as food and housing continue to drive monthly household budgets upward, with 62% of consumers increasing their grocery spending since December. On the other hand, consumers are increasingly deprioritizing non‑essential purchases: 27% of consumers are paring down spending on entertainment and restaurants.
• AI is increasingly being used as a research channel: As shopping continues to shift toward technological transformation, the data shows that 28% of consumers are using AI chatbots for purchase research, highlighting AI’s emerging role as a tool for consumer decision‑making.
• Consumers across income levels continue to seek value: Consumers are about as likely to switch to a more affordable store as they are a different brand, leading to an upswing in traffic to everyday low price (EDLP) and dollar stores, reflecting a continually heightened willingness to abandon traditional loyalties as price sensitivity becomes a defining behavior.

“As consumers shift spending to manage financial pressure, value remains the top priority across income groups,” says Will Auchincloss, EY-Parthenon Americas Retail Sector Leader. “AI is changing how people discover, evaluate and buy, but it’s not a strategy on its own. Retailers need to use it in ways that improve the shopping experience, strengthen value and keep them relevant with customers.”

Learn more about the EY-Parthenon Consumer Sentiment Survey at ey.com/en_us/industries/retail

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Methodology

Wave 4 of the EY-Parthenon US Consumer Sentiment Survey includes responses from 1,500 US consumers, reflecting a broad cross-section of the general population. Survey topics include personal financial confidence, spending and savings behavior, category-level spending trends, retail traffic, channel preferences, artificial intelligence (AI) usage and broader macroeconomic sentiment. The survey is conducted bimonthly.