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The Present Situation Index, which reflects consumers’ views of current business and labor market conditions, fell 3.2 points to 121.2. Survey responses showed increasing concern around gasoline prices, oil, inflation and geopolitical tensions in the Middle East.

Consumer behavior in May reflected a more selective and value-focused mindset. According to the report, 66.5% of consumers said they are cutting back on overall spending, particularly in discretionary categories such as clothing, hobbies and toys. Nearly half reported delaying major purchases, while 46.6% said they are prioritizing needs over wants.

At the same time, some forward-looking indicators showed modest improvement. The Expectations Index rose to 74.4 in May, though it remains below the threshold historically associated with recession concerns. Consumer plans for major purchases, including vehicles and homes, held relatively steady, while travel intentions for the next six months also improved slightly. Domestic travel continues to outperform international travel preferences, a trend that could continue supporting recreational boating and other close-to-home leisure activities heading into the summer season.

Despite ongoing uncertainty, several economic fundamentals remain supportive of consumer activity. Employment levels remain relatively strong, wage growth continues and higher-income households continue benefiting from gains in equity markets. Still, consumers appear increasingly cautious in how and when they spend.

NMMA will continue tracking consumer sentiment and its impact on the industry. Members are encouraged to leverage tools such as the Monthly Industry Data Summary and Marine Leadership Barometer to support planning and navigate evolving market dynamics.

For more economic updates and data-driven insights, visit nmma.org/statistics or contact the NMMA Business Intelligence team at [email protected].