Katz: Retailers, Restaurants Can Reach Cautious Consumers.

Economic uncertainty is prompting consumers to delay major purchases and reduce spending on dining, retail shopping and travel, although many continue to prioritize essential expenses and purchases that they consider worthwhile, according to a new study from Katz Analytics.

The survey of 1,000 consumers conducted this month found that 56% of respondents are delaying major purchases because of economic uncertainty. Nearly half said they plan to cut back on dining out (49%) and retail shopping (48%) over the next six months. Another 44% expect to reduce spending on travel and vacations.

The findings suggest that consumers are becoming more selective about how they allocate their money rather than abandoning discretionary spending altogether. Dining out and seasonal shopping remain activities that many consumers expect to continue, particularly when purchases offer convenience, meaningful experiences or emotional value.

The research, published through Katz Radio Group’s Sound Answers insights platform, examines how changing consumer attitudes toward spending could affect advertisers and the media strategies they use to reach potential customers.

For marketers, the findings underscore the importance of demonstrating value and making advertising investments more efficient. Katz cited a Nielsen Media Impact cross-media simulation that found reallocating 10% of an existing media budget to AM/FM radio could increase consumer reach by 20% for an advertiser running television, connected TV and digital campaigns, without increasing total spending.

The study also found that consumers are more reluctant to reduce spending on certain essential categories. More than half of respondents (58%) said they would not cut back on healthcare expenses. Another 47% identified auto insurance as a protected expense, while 43% said they prioritize vehicle maintenance.

These categories reflect expenses associated with health, safety, mobility and everyday responsibilities. Even as consumers become more price-conscious, the findings indicate that reliability and perceived value remain important considerations when deciding which products and services merit continued spending.

Katz said advertisers in essential categories have an opportunity to reinforce dependability, transparency and long-term value. Brands selling discretionary products and services, meanwhile, may need to emphasize competitive pricing, convenience, flexibility or experiences that consumers consider worth the expense.

AM/FM radio remains a potential channel for reaching those consumers as they evaluate their options. According to Nielsen data for the first half of 2026 cited by Katz, broadcast radio reaches more than eight in 10 consumers weekly and 92% of U.S. adults monthly.

The Katz study assigned radio advertising an average influence score of 36.3 out of 100 for its impact on brand trust and consideration.

Retail advertising was the category most frequently cited by respondents as capturing their attention on radio, with national retailers and local shops cited by 39%. Quick-service restaurants and dining deals followed at 38%, while travel destinations and airlines registered 25%.

The results point to opportunities for advertisers to use timely promotions and locally relevant messaging to attract consumers who are weighing prices and reconsidering their budgets.

For retailers, restaurants and travel companies, the challenge is to give consumers a compelling reason to spend while acknowledging greater financial caution. For advertisers across categories, the research suggests that maintaining consumer trust and clearly communicating value will remain important as households make spending decisions in an uncertain economic environment.