Horizon: Live Experiences Only Discretionary Category Showing Spending Growth.

Americans are feeling somewhat less pessimistic than they were at the end of 2025, but most households remain financially strained and are largely holding spending steady, according to Horizon Media’s latest Consumer Pulse report.

The report, based on surveys of 5,000 U.S. adults in late 2025 and 2,000 adults in early 2026, found that 47% of Americans remain financially stressed, a figure unchanged from the previous quarter. Among the key findings: 47% are financially stressed, and 50% are overwhelmed by financial burdens.

Despite the ongoing financial pressure, optimism improved in several areas. Pessimism about healthcare fell by 8 percentage points and concern about the job market dropped by 6 points, with Gen X and Baby Boomers driving much of the change. Horizon attributed some of the improvement to the end of a government shutdown and the conclusion of Affordable Care Act enrollment without major disruptions.

The most financially stressed Americans showed the biggest increase in optimism about their personal lives over the next six months, rising from 30% in the fourth quarter of 2025 to 37% in the first quarter of 2026. The report said the improvement reflected stabilization rather than a full economic recovery.

Spending intentions changed little across most categories. Horizon said many consumers have already cut non-essential purchases and have little room left to reduce spending further. However, signs of “budget fatigue” are emerging. Half of respondents said they feel overwhelmed by financial burdens, and 33% said they spend impulsively, up 4 percentage points from the previous quarter. The increase was especially pronounced among Gen X consumers.

Live events and cultural activities were the only discretionary category to show significant planned spending growth, with Millennials leading the increase.

Rather than increasing spending, many Americans are changing their habits. The report found increases in healthy eating, do-it-yourself projects and efforts to limit social media use. These activities generally require time and effort rather than additional money.

Horizon’s survey also found growing adoption of artificial intelligence. Sixty-nine percent of adults now use AI tools at least monthly, and 27% use them daily. At the same time, concern about falling behind peers in AI usage increased by 4 percentage points overall and by 9 points among daily users.

Trust in AI remained mixed. The report said fewer than half of consumers trust AI-generated information, while 80% expressed concern about AI’s broader impact on society.

Looking ahead, Horizon said several questions remain unresolved, including whether budget fatigue will worsen, whether AI anxiety will affect consumer confidence, and whether improving sentiment will eventually translate into higher spending. The report noted that major events occurring after the survey period, including the start of the U.S.-Iran conflict, could influence future consumer attitudes.