The news: US inflation ticked up 0.1% last month and 2.4% YoY, a softer read than many economists expected but one that kept the pressure on consumers already dealing with a higher cost of living. Our take: Retailers, especially grocers and discounters, can set themselves apart by helping consumers save money and be more financially responsible. Offering digital coupons, using in-store signage spotlighting sales on daily essentials, and rewarding loyal shoppers for repeat purchases can foster smarter spending.

US financial institutions are experiencing a significant increase in losses, with a rising number of banks and credit unions reporting consistent quarterly losses, according to S&P Global. This trend highlights mounting pressures on the industry, including high interest rates, growing loan losses, declining overdraft fee revenues, and intense deposit competition. S&P Global warns that such sustained losses could severely limit strategic options for struggling institutions, potentially leading to mergers, acquisitions, or even regulatory shutdowns. To navigate this challenging environment, financial institutions must proactively adapt their business models, explore strategic partnerships to boost efficiency, expand offerings, and enhance the customer experience to improve loyalty.

Tariffs are slowing retail sales growth: A Reuters analysis found the Trump administration’s trade policies have cost companies more than $34 billion in lost sales and higher costs, and that toll keeps rising.

54% of global marketers are slashing ad spend, says Nielsen: The need for adaptability, rather than bigger budgets, is more prominent than ever.

Low-income consumers feel squeezed: With prices rising and the GOP tax bill set to reduce their after-tax income, relief may not come soon.

A trade war between two of the world’s largest consumer markets would cause significant disruption for consumers, retailers, and brands in Europe.

On today’s podcast episode, we discuss what we expect from consumer spending in Q2, the three scenarios we expect for total media (and digital) ad spending, and how marketers are reacting to everything. Join Senior Director of Podcasts and host Marcus Johnson, Principal Forecasting Writer Ethan Cramer-Flood, and Senior Forecasting Analyst Zach Goldner. Listen everywhere and watch on YouTube and Spotify.

Retail sales rose 5.2% YoY in April: But the gains mask a tough climate as consumers pulled forward purchases of tariff-sensitive items like home goods.

Inflation waned in April: But early signs of cost increases are emerging.

As US-imposed trade tariffs begin to take effect, business decision-makers and consumers are grappling with how to prepare—some more than others.

Consumers pulled back on dining out in Q1: Restaurant Brands faced headwinds but saw an April rebound, while Krispy Kreme is changing course to regain momentum.

SNAP rollbacks could shrink grocery baskets and curb discretionary spend: With household spending already under strain, further benefit cuts risk triggering a broader pullback in consumer demand.

Marketers are cutting branding spend in favor of performance media: Search and retail win as caution dominates strategy.

US consumers will spend $3.2 billion on flowers this Mother’s Day: While NRF’s forecast is flat YoY, florists face tighter margins as tariffs drive up costs.

Toys are among the first cuts when consumers feel squeezed: Coupled with shifting tariff policies, that puts Mattel in a tough spot.

Inflation causes Gen Z shoppers to rethink when and where they shop: Growing financial strain is forcing shoppers to adjust their spending habits.

The Trump administration injects more uncertainty into supply chains with new ship fees: While less stringent than initially proposed, the levies will raise costs and complicate operations.

UK marketers cut budgets in Q1: Economic pressures and Trump’s trade moves spark shift to performance-focused tactics and short-term gains.

Brand loyalty membership is rebounding in the UK as shoppers turn to loyalty programs for savings. Supermarkets are driving innovation, but there is space for brands and retailers of all sizes to boost revenues and forge stronger customer connections.