In the first quarter of 2025, consumers in Europe expressed caution over their respective economies. At the same time, consumers said they maintained their household income, savings, and spending rates from the previous quarter.
The following charts highlight findings from our latest ConsumerWise research, which considers consumers’ overall outlook, trading-down practices, spending intent by category, and willingness to splurge. We cover France, Germany, Italy, Spain, and the United Kingdom (EU-5).
On average, half of consumers in Europe had mixed feelings about the economy. Nearly one-quarter of consumers felt optimistic—though just as many felt pessimistic. This is similar to what consumers reported at the end of 2024. Differences emerged at the country level: For example, consumers in France reported pessimism at the highest rate (32 percent) compared with any of the other countries in our survey. Consumers in Spain, meanwhile, reported optimism at the highest rate (32 percent).
When surveyed about several economic, political, and social concerns, consumers across Europe ranked rising prices and inflation as their top concern. The share of consumers who reported this among their top three concerns decreased (from 56 percent for EU-5 in the first quarter of 2024 to 47 percent in the first quarter of 2025). Immigration, climate change, and international conflicts also worried consumers.
Even though consumers remained concerned about inflation, 61 percent also said their income remained about the same compared with the past three months. At the same time, 38 percent said their spending increased over the past three months, and 43 percent said their savings decreased. These dynamics largely mirrored what consumers reported at the end of 2024.
In line with seasonal spending patterns, consumers across European countries expressed their intention to pull back spending on several discretionary categories.
Food delivery apps, entertainment away from home, and restaurants were three discretionary categories in which consumers expressed an intention to spend less.
As spring nears, consumers reported a predictable increase in spending intentions for home and gardening supplies, as well as in categories related to summer holidays (such as hotel bookings).
It is worth noting that consumers’ intent to spend on travel was higher in the first quarter of 2025 compared with the same period in 2024, though how and where European consumers said they intended to spend on travel varied. Consumers in Spain said they intended to spend more on cruises and hotel stays. Meanwhile, consumers in France and Italy said they intended to spend more on international flights. Compare that to German consumers, who said they planned to increase spending on domestic flights and hotel stays (these same consumers expressed a ten-percentage-point decrease in intent to spend on international flights from the previous quarter). There was one outlier in our data: In the United Kingdom, consumers reported a decrease in intent to spend on most travel-related expenditures.
Across Europe, about one-third of consumers said they intended to splurge over the next three months. This figure was higher in Germany (43 percent expressed an intent to splurge over the same period).
While there were differences in which categories consumers deemed most splurge-worthy (consumers in the United Kingdom said they intended to splurge on groceries, for instance), we saw bigger divergences by age group. Older consumers were most interested in travel and restaurants, while younger consumers were most interested in apparel. This difference is probably attributable to the growing interest in experiences over products (we tend to see this dynamic grow as consumers age). The cost-of-living squeeze exacerbates this dynamic, since older consumers have usually accumulated more wealth and are better able to afford bigger-ticket splurges.
At the beginning of the year, consumers in Europe expressed sentiment about their spending that largely tracked with seasonal trends. Looking ahead, the outcome of elections in Germany, international relations, and tariffs could affect how consumers across these five European nations feel about their wallets. Check out our ConsumerWise page and contact us for more information and additional insights.
