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Financial Health Plummets Amid the Holiday Season

Even in the best economic conditions, the holidays can create financial stress. But as consumers in the United States continue to feel the pinch of persistent inflation and high cost of consumer goods, a perfect storm of financial insecurity may be brewing.

According to JD Power, the number of consumers in the United States classified as financially healthy^[1] fell to 30%. The drop represents a 13-month low, as consumers show growing concern about not only how they’ll afford their holiday shopping, but also how to manage the cost of household necessities. 

Monthly utility bills are a focal point. More than 1-in-5 (22%) consumers do not feel they are financially equipped to handle their current utility bill, and 78% are worried about the cost of their utilities in the next 12 months. 

 

Financial Health Tumbles 

The percentage of U.S. consumers categorized as financially healthy dropped to 30% in November, down 4 percentage points from October. This is the lowest rate of financially healthy consumers in over a year. The share of consumers who are either vulnerable, overextended or stressed increased to 70%.

 

The percentage of consumers who say the price of goods is rising faster than their income rose to 69% in November. Notably, the percentage of financially healthy consumers who say the price of goods is rising faster than their income is now 58%, up 3 percentage points from November. 

 

Festival of (Expensive) Lights

That financial pinch isn’t just from trying to pile presents under the tree. In fact, as the data has indicated for years, consumer financial health has long been stuck in a malaise, vacillating between varying degrees of financial stress. And, as we’ve seen consumers trim back on travel, holiday shopping and more, their worries are now shifting to something more basic: utilities. 

Overall, 22% of consumers say they do not feel financially equipped to handle their current utility bills. This rate was highest among vulnerable consumers (39%) and consumers under the age of 40 (26%). 

 

When asked about the next year of utility bills, consumer sentiment turned increasingly negative. A majority (78%) of consumers say they are worried about the cost of their utility bills increasing in the next 12 months, with 25% of those being extremely worried. Once again, vulnerable consumers pace the field, as 84% say they are concerned, followed by 82% of stressed consumers, and 78% of consumers over the age of 40. 

 

 

 

A Time for Resolutions

The jury is still out whether this latest dip in financial health is the culmination of four years of struggle, or simply another monthly ebb in consumer sentiment. But with the primary indicators tracking downward amid increased anxiety around routine household expenditures, there is certainly reason for some concern.

As we continue to monitor through next month – when many of these holiday bills come due – consumer financial health will need be front-and-center in the minds of banks and financial institutions, utilities, retailers and more.

 

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 consumers nationwide and was fielded in November 2025. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please use the contact information below to connect with Ms. White or to learn more about the underlying research.

 

Media Contacts
Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Joe LaMuraglia, JD Power; East Coast; 714-621-6224; [email protected]

 [1] JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.

Affordability, AI and Outages Top Issues Keeping U.S. Utility Leaders Up at Night in New Year: JD Power Utilities Outlook 2026

Utilities Intelligence Report
January 2026

 

Key Insights

• Midterm elections will fan flames of rate debate:  Average monthly residential electric utility costs have surged 34% since 2020, reaching $189 for the full year 2025—the highest annual average ever measured by JD Power. This will make an easy talking point for politicians running for midterm elections and a palpable pain point for customers who are struggling to pay their bills.
• Extreme weather and outages put spotlight on communication: More than half (55%) of utility customers nationwide experienced a power outage in 2025, putting increased pressure on utilities to deliver proactive communication before, during and after power restoration.
• Cannot afford to ignore technology: More customers than ever are turning to utility websites and apps as their first line of communication, yet nearly one-in-five (19%) encounter problems with slow or poorly organized websites and nearly one-third (28%) of utilities still do not offer mobile apps.

Executive Summary

The nation’s electric, gas and water utilities have their work cut out for them in 2026. A combination of record-high rates, widespread outages and evolving customer expectations for how to access important information and engage with service providers are challenging the status quo. In many cases, utilities have become high-profile consumer brands and that makes them subject to an increased level of public scrutiny, especially when things do not go as planned.

This Utilities Intelligence Report dives into key data points gathered from JD Power studies and proprietary market data to offer a data-driven perspective on the biggest issues confronting utilities as we head into 2026.

Affordability Now Frames Every Conversation

Monthly utility bills have come to occupy a significant share of consumers’ recurring household expenses, with the average monthly electricity bill reaching $189, the average monthly gas bill at $122 and the average monthly water bill hitting $101 through 2025. Electric bills in particular hit record highs in 2025, and customers are feeling the pain, with 22% indicating they are unable to pay their full bill or currently owe an outstanding amount to their utility.

These rising household costs have already become a major talking point for politicians running for midterm elections and will continue to make headlines following rate cases and key economic data releases. To counteract this negative attention, utilities will need to strengthen their affordability initiatives, proactively communicate upcoming rate changes with explanations for why changes are occurring, and expand assistance programs to support financially stressed customers. JD Power data shows that when utilities have strong brand appeal perceptions, 37% of their customers trust them to set fair rates. Meanwhile, when utility brand appeal is weak, only 10% of customers trust them to set fair rates. Utilities will need to highlight the steps they are taking to help customers manage affordability challenges in 2026.

Right or Wrong, More Customers Blame AI for High Electric Costs

Rising raw materials costs, natural disasters and increased demand are some of the reasons for the steady rise in residential electric utility bills over the past several months, but one culprit in particular has increasingly sparked customer ire: the rapid expansion of data centers to support AI. 

In fact, data centers in the United States accounted for 4%¹ of total power demand in 2025. While that is a marked increase over the past five years, it does not translate directly to higher rates at every local electric utility in the nation. Still, 16% of electric utility customers say they feel AI/data centers have played a role in increasing their utility bills in the past year. For the most part, electric utilities have not been communicating with their customers about the factors driving increased demand, but that needs to change. In the absence of proactive communication that clarifies data centers aren’t the sole reason for rising rates, speculation will continue to grow. 

Extreme Weather and Service Disruptions Create Sense of Urgency

Overall, 55% of utility customers nationwide say they have experienced a power outage in 2025. Of those outages, 47% were due to extreme weather such as a hurricane, ice or snowstorm, thunderstorm, wind or tornado or fire. These extreme weather events were so violent that 17% of customers who were affected by a natural disaster say they had to evacuate their homes. 

Customer satisfaction with residential electric utility providers is significantly higher when customers receive timely, accurate outage information. Utilities that proactively communicate about power outages earn satisfaction scores that are 52 points higher (on a 1,000-point scale), on average, than utilities that do not proactively communicate with their customers. Similarly, utilities that proactively reach out to their customers to share information about infrastructure investment and improvements being made to the grid have overall satisfaction scores that are 82 points higher than those that do not.

Utilities should enhance proactive communication strategies, invest in accurate outage maps and ensure customers receive timely alerts. Proactive, multi-channel communication (text, email, phone) will be essential for building trust and improving reliability perceptions, particularly in response to unpredictable events.

Digital Engagement and Self-Service Become Critical

More customers than ever are turning to utility websites and apps as their first line of communication when it comes to questions about billing, service disruptions and other customer service issues, yet nearly one-in-five (19%) encounter problems with slow or poorly organized websites and nearly one-third (28%) of utilities still do not offer mobile apps.

Among water utility customers, for example, just 20% say they have recently reached out to their utility via phone, while 37% say they have used an app or gone to their water utility’s website seeking information. Moreover, customers who use digital channels have overall satisfaction scores that are 43 points higher (on a 1,000-point scale) than those who use the phone.

As more customers continue to pursue digital means of problem resolution as their first line of communication, many utilities will need to strengthen their customer support technology to keep pace with rising expectations.

Find out More

This Utilities Intelligence Report is based on data and insights gathered across all JD Power Utilities Intelligence studies conducted during 2025. It was authored by Andrew Heath, vice president, Utilities and TMT Intelligence; Chris Oberle, managing director; John Hazen, managing director; and Mark Spalinger, director of Utilities Intelligence at JD Power.

Please contact us at the numbers below to connect with the team or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected] 
Joe LaMuraglia, JD Power; East Coast; 714-621-6224; [email protected] 

 

¹ Pew Research Center, “What we know about energy use at U.S. data centers amid the AI boom,” October, 24, 2025 https://www.pewresearch.org/short-reads/2025/10/24/what-we-know-about-energy-use-at-us-data-centers-amid-the-ai-boom/ 

Honda Customer Satisfaction Measurement

The Need

More than 20 years ago, American Honda Motor Co., Inc., in its pursuit of continuous improvement, approached JD Power with a request for a proprietary customer satisfaction measurement program that would measure its dealer sales and service operations. Since that time, many changes have occurred, including client staff, several initiatives, new technologies, and operational improvements. One constant, however, is that the Honda and Acura brands continue to use JD Power to conduct their customer satisfaction tracking.

The Solution

Each year, JD Power fields more than 3 million surveys to Honda customers via phone, mail, and Web to collect data on responses to specific questions regarding the client’s dealership service quality, including initiation, service advisors, facilities, and convenience of service. The data is used by all levels of the organization, including corporate, field organization, research, and dealers. Through the years, Honda has employed findings from this research to make continuous improvements to its processes; implement such new service programs as concierge services; and recognize dealers for good performance, among other achievements. The dedicated JD Power research team continuously advises Honda on improving the tracking program’s performance to increase response rates and leverage digital solutions for greater transparency in the research process.

The Result

In addition to building and improving the measurement program to meet its changing requirements over the years, JD Power has served as a trusted advisor to Honda on research methodology, best practices, and analyses to help the company understand the findings and identify improvements that continue to build loyalty for the brand.

E-Vision Intelligence Report
March 2025

Key Findings

• Overall EV Market Share Rising: Overall electric vehicle (EV) market share as a percentage of total vehicle sales volume was 9.3% in March 2025, up 0.9 percentage points from 8.4% in March 2024.
• New EV Purchase Consideration Flat: Overall, 23% of shoppers actively in the market for a new vehicle say they are “very likely” to consider buying or leasing an EV in the next 12 months. That number is flat with the February total and up half a percentage point from 22.5% in March 2024.
• Tesla Remains Most Considered Brand, but it is Losing Market Share: Among active new vehicle shoppers who are “very likely” or “somewhat likely” to consider an EV, Tesla is the top-ranked brand, followed by Chevrolet, Ford and Toyota. Tesla’s total share of the EV market has declined steadily during the past two years, reaching 47% in December 2024, and its brand consideration has declined to 18.2% in March 2025 from 20.5% in March 2024. 

Executive Summary

Amid widespread speculation about the future of the EV market following the Trump administration’s plans to end federal EV incentives and a flurry of news about the effects of newly announced tariffs on the auto industry, consumer sentiment toward EVs has not shifted as wildly as the headlines may suggest. While trends in demand are shifting geographically, socioeconomically and among individual brands, the industry continues to evolve.

This E-Vision Intelligence Report dives into key data points trending in each monthly JD Power EV Index update, along with other data points gathered from JD Power studies and pulse surveys, to offer a data-driven consumer perspective on the EV customer experience.

Growth Rates Normalize

While the overall growth rate in EV market share has slowed, EV’s currently account for 9.3% of the total new vehicle market, down from 9.6% in February and up from 8.4% in March 2024. The current growth rate is directly in line with the JD Power projection of 9.1% overall retail share for 2025, which is flat with 2024 totals and one percentage point higher than 2023 volumes.

Nearly One-Fourth of Vehicle Shoppers Seriously Considering EVs

The total number of active new vehicle shoppers who say they are “very likely” to consider an EV for their next vehicle declined slightly to 23.0% in March 2025, down from 23.3% in February 2025 and up half a percentage point from 22.5% in March 2024.

Consideration rates are highest among consumers earning more than $100,000 per year and those living in the West and Northeast. Consideration is also down three percentage points to 20% among vehicle shoppers who cite their political party affiliation as Republican. At 30%, the “very likely” consideration rate slightly improves (up 0.4 percentage points) among those who identify as Democrat.

Tesla Market Share Falters

Tesla has been at the center of news coverage of the EV market by virtue of its CEO, Elon Musk’s role in the Trump administration and reports of protests and vandalism at Tesla dealerships. According to JD Power data, Tesla is still the most-considered brand among active EV shoppers with 18.2% of those currently in the market for a new vehicle indicating that they are “somewhat likely” or “very likely” to consider an EV selecting Tesla as their top brand. That number is up from 17.7% in February 2025 but down from 20.5% in March 2024. Additionally, among the vehicle models with the highest levels of consideration by consumers, only the Tesla Model 3 (7^th) ranks among the top 10. In March of 2024, the Model 3 was the fourth most frequently considered EV model.

Tesla’s overall share of the EV market has been declining steadily for the past two years as the brand has faced growing competition from other manufacturers and as its vehicle lineup has continued to age. Through December 2024, total Tesla share of the EV market had fallen to 47%. 

Methodology

This JD Power E-Vision Intelligence Report is based on data and insights from the JD Power EV Index, the JD Power EV Retail Share Forecast, the JD Power 2025 U.S. Electric Vehicle Experience (EVX) Ownership Study,^SM and the JD Power U.S. Electric Vehicle Consideration (EVC) Study.^SM The JD Power EV Index is an analytics tool to benchmark the growing EV market in the United States. It tracks millions of data points aggregated into six categories—interest, availability, adoption, affordability, infrastructure and experience—to evaluate the progress to parity of EVs with gas-powered vehicles in the U.S. Each month, the JD Power electric vehicle practice will analyze these data points, and others to spotlight emerging trends and important shifts in consumer sentiment that are helping to define the fast-moving EV marketplace.

Find out More

This report was authored by Elizabeth Krear, vice president, electric vehicle practice; Brent Gruber, executive director, electric vehicle practice; Stewart Stropp, executive director, electric vehicle practice; and Kristen Richter, senior manager, electric vehicle practice. The JD Power E-Vision initiative is a company-wide program focused on maximizing JD Power industry-leading EV data, analytics, insights and solutions. Please contact us at the numbers below to connect with the authors or to learn more about the underlying research.

Media Contacts

Shane Smith; East Coast; 424-903-3665; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

Banking customer satisfaction is on the rise across the U.S. in an unexpected trend, given current economic challenges. 

We are in an uncertain economic environment and many U.S. consumers report declining consumer financial health and annual household income. This isn’t great news for banks, but despite these challenges, banks are prioritizing personalized relationships and giving their customers the tools they need to manage their finances more effectively. The end result is happier customers who are more likely to stay loyal to their current financial institution.

Insights from the JD Power 2025 U.S. Retail Banking Satisfaction Study^SM, released on March 27, 2025, highlight what’s behind these trends. The study, currently in its 20^th year, measures consumer satisfaction across seven key dimensions: trust, people, account offerings, banking convenience, saving time and money, digital channels, and problem resolution.

Keep reading for a look at which banks are excelling in your region. 

2025 JD Power U.S. Retail Banking Award Winners by Region: 

• California: Chase
• Florida: Fifth Third Bank (for a second consecutive year) and TD Bank in a tie
• Illinois: Wintrust Community Banks (for a fourth consecutive year)
• Lower Midwest Region: BancFirst (for a third consecutive year)
• Mid-Atlantic Region: Capital One (for a second consecutive year)
• New England Region: Bangor Savings Bank (for an eighth consecutive year)
• North Central Region: Centier Bank
• Northwest Region: Banner Bank
• New York Tri-State Region: Liberty Bank
• Pennsylvania: Chase
• South Central Region: Capital One
• Southeast Region: United Community Bank (for a second consecutive year)
• Southwest Region: 1st Bank (for a fifth consecutive year)
• Texas: Frost (for a 16th consecutive year)
• Upper Midwest Region: Gate City Bank

 

Key Findings From the JD Power 2025 Study

While many banking customers may be concerned about some aspect of their finances, overall customer satisfaction with retail banks is up by 11 points from 2024. The likelihood that customers will stay loyal to their current bank has also risen by 2 percentage points. Banks are focusing on personalized experiences, and it’s paying clear dividends—but what strategies are driving these improvements?

1. Educating Customers About Fees
   No one likes surprise costs or hidden fees. Banks that have put efforts into helping their customers understand fee structures have helped many of them avoid unnecessary charges. It’s a proactive and customer-centric approach that’s played a key part in boosting overall customer satisfaction.
2. Efficient Problem Resolution
   A small percentage of customers are going to experience fraudulent or incorrect charges, no matter how careful or secure their banking processes are. Surveyed customers of the leading banks have a more satisfying experience resolving problems when they do occur.
3. Increased Visibility of Support Services
   Tools are only useful if they’re available, and more customers are being made aware of financial health tools like credit score monitoring and budgeting tools provided by their banks. Though these resources aren’t necessarily new, many customers may have been unaware of them. Easier access to these features, along with other benefits like streamlined direct deposit options, make it easier for customers to manage their finances.
    

How JD Power banking awards and rankings help consumers to make informed choices 

The sheer number of options when it comes to financial institutions, lenders, products, and services can be overwhelming for customers. The choice fatigue makes it difficult for the average consumer to tell which bank best meets their needs or prioritizes features that are important to them. 

Online reviews only make the problem worse, which are usually comprised of opinions from a small but vocal and ultimately unrepresentative group of customers.

JD Power is a trusted voice when it comes to providing an accurate and reliable picture of customer satisfaction. With study results grounded in the real-world experiences of over 100,000 banking customers, JD Power presents unbiased and independently funded research based on a statistically representative group of customers.

It’s the kind of comprehensive analysis that consumers can trust for an in-depth look at what banks are doing to make their customers happy, as well as common complaints. Taken together, it’s a complete picture that helps consumers make better, more informed decisions when looking for the best banking experiences.

Tips for Choosing a Bank

Finding the right bank doesn’t have to be overwhelming, even in an uncertain economy with countless options. The JD Power 2025 U.S. Retail Banking Satisfaction Study helps customers identify which banks are delivering standout experiences in each region. Use the findings above as a starting point to find the best bank near you.

Start by visiting the bank’s website to explore their account offerings, tools, and services that are of interest to you. Most banks also have a tool that can help you locate the nearest branch location to you. Consider visiting a location near you to speak with a representative and ask any questions you may have prior to opening an account. 

Doing your homework can help you to make a well-informed decision about which retail bank to work with and can set you up for the most satisfying banking experience possible.  
 

 

The Three F’s of Banking: How Banks Are Winning Hearts in Hard Times

 

Despite ongoing financial strain, customer satisfaction with retail banks is on the rise. New findings from the JD Power U.S. Retail Banking Satisfaction Study reveal how banks are adapting to consumer needs and building trust. Jennifer White, Senior Director of Banking Intelligence, shares the latest trends. 

Rising Satisfaction Amid Financial Strain
Even though consumers are facing economic hardships—reflected in declining deposits and investment amounts—overall satisfaction with their banks has increased. Consumers are more likely to return for additional products, and Net Promoter Scores (NPS) have improved. Despite the challenging financial environment, customers are finding value in their banking relationships.

Banks Are Rising to the Challenge
“Banks are spending more time helping customers manage their financial lives in a way that goes well beyond routine transactions,” White explained.

Building on this positive sentiment, banks have been investing heavily in digital tools and personalized services to support customers in managing their finances. Features like budgeting tools, savings goal trackers, and proactive alerts in mobile apps are helping consumers feel more empowered to navigate their financial situations. These efforts are a key reason behind the increasing satisfaction scores.

Tackling the “Three F’s” (Fees, Fairness, and Fraud)
However, consumer concerns about fees, fairness, and fraud persist. Despite these challenges, banks have been taking necessary steps to address these issues. Increased transparency around fees, enhanced fraud protection measures, and efforts to ensure fair treatment are helping build greater trust with customers. While there’s still work to do, these improvements are contributing to more positive customer experiences.

Declining Deposits
The study also finds that the average deposits held by consumers at their primary bank continue to decline. With 33% of consumers reporting less than $1,000 in deposits, the divide between those with significant savings and those struggling to save is widening. This highlights the financial strain many consumers are facing and presents a challenge for banks in providing accessible financial solutions.

Financial Advice Is Gaining Traction—But Awareness Is Still a Hurdle
More customers are recalling their banks’ advice and guidance—and many are taking action. Still, banks face challenges in cutting through the noise.

“The leak is still really occurring at just getting customers’ attention,” White said. “That, at the core, is about the volume of messaging, the spread of the messaging over a calendar year. It’s about making sure that the content is personalized.”
Banks that succeed here are integrating guidance across channels—from in-branch conversations and call centers to in-app banners and automated savings nudges.

Whether through a mobile app or in-person interactions—customers feel more supported in their financial decisions, contributing to their overall satisfaction.

What’s Next for Retail Banking?

The findings from this year’s study make one thing clear: to maintain long-term customer loyalty, banks must continue to:

• Invest in digital tools that enable consumers to manage their financial lives with ease and confidence.
• Enhance transparency around fees, fraud protection, and fairness to foster trust.
• Provide personalized financial advice that empowers customers to make informed financial decisions.

As the banking landscape continues to evolve, these findings underscore the importance of banks acting as trusted partners in helping customers manage their financial health and navigate uncertain times.

Read the JD Power 2025 U.S. Retail Banking Satisfaction Study press release for more key findings.

Read the Press Release

The effects of the pandemic on air travel are still being felt today with capacity issues, supply chain problems, crowded planes, and higher prices affecting satisfaction.

These factors present a challenge for airlines seeking to engage and retain their customer base. Reputation management and fostering goodwill through strategic marketing and consistent messaging is now more critical than ever. 

A key to successfully nurturing these relationships is gaining a solid understanding of the significant role that brand image and reputation can play, as discerned from independent customer research found in the annual JD Power North America Airline Satisfaction Study.

Why Reputation Matters

It should come as no surprise that customer satisfaction is a key driver of retention. While service quality is essential, positive experiences with an airline play a significant role in reducing customer churn and building a strong reputation among travelers.

Reputation is not built overnight; rather, it is a blend of service, value, and reliability that is consistently experienced by the passenger across multiple flights. Brand reputation becomes an even more critical differentiator when price and convenience are converging across competing airlines. Reputation becomes even more important in premium and upper-class cabins, where price is often less of a concern. While a direct flight to a final destination remains a primary decision driver for travelers, their final airline selection is also influenced by an airline’s reputation and the traveler’s past experiences with that airline.

What can airline marketers do to attract and retain their customer base? 

Airlines can drive perceptions of value among travelers by emphasizing brand reputation in their messaging. Airline marketers should strategically feature reputation and credibility-building content in campaigns, especially those targeting premium and upper-class travelers.

How can they do this? 

• Consistency is key: Even loyal customers can become susceptible to new marketing messages and entreaties from competitors after enduring inconveniences or issues. Consistently communicating a commitment to customer satisfaction and delivering reliable, excellent service can help to build the goodwill and brand resilience necessary to retain loyalty despite potential issues or competitive appeals.
• Highlight ease of travel and reliability: Emphasize ease of travel in the messaging. Topics might include check-ins; comfortable flights with adequate amenities; and accessible, knowledgeable, and interactive staff. Take time to understand the specific needs and expectations of target customers and integrate these insights directly into marketing strategies and messaging.

• Leverage third-party credibility boosters: Customers are seeking independent third-party decision support backed by personal experience. Each year, the JD Power North America Airline Satisfaction Study independently surveys more than 9,500 passengers who have flown on a major North America airline within the past month and recognizes the airlines with the highest customer satisfaction ranking in each class segment. Marketing awards that are based on thousands of first-hand customer experiences can provide a critical way for airlines to demonstrate to travelers that they are reputable and worth consideration. 

   

Stay tuned to learn which airlines are rising above the competition when the results are released on May 7, 2025. In the meantime, learn more about the JD Power North America Airline Satisfaction Study Awards.

U.S. Investors, Lacking Reassurance from Financial Advisors, Call This “The Toughest Investment Climate” They’ve Experienced

With the Dow Jones Industrial average heading toward its worst April since the Great Depression and the S&P 500 down about 13.9% from its peak in mid-February, following the introduction of a sweeping set of tariffs on imported goods, U.S. investors are understandably concerned about their portfolios. While recent suspensions of some tariffs may have prevented further market declines for now, the continued sense of uncertainty persists. Exactly how serious is investor concern, and how is it affecting their experience with their financial advisors and wealth management firms?

This JD Power Wealth Intelligence Report analyzes data from the JD Power Financial Services U.S. Investor Pulse Survey, which was fielded on April 15 and April 16 to take the pulse of investors in the United States as they navigate this period of market volatility.

Investor Confidence Shaken by Tariffs

On April 2, the Trump administration unveiled a set of tariffs on all imports into the country, and even higher tariffs on goods from about 60 countries or trading blocs that have a high trade deficit with the U.S. While markets had been bracing for tariff action, the scale of the announcement caught many by surprise, and markets reacted sharply, with the S&P 500 dropping more than 10% in the two days following the announcement.

That sudden spike in volatility has put many investors on edge, with many anticipating a tough road ahead as they continue to navigate this period of economic uncertainty. Overall, 56% of investors said: “this is the toughest investment climate I’ve experienced,” while 33% said they’ve experienced worse and 11% were not sure.

When asked whether the tariff news had shaken their confidence in their investments, 40% of investors said they believe the tariffs are hurting their portfolios and making them rethink their strategy. Another 34% said they were not sure, but they were worried about the potential effects of the tariffs. Just more than one-fourth (26%) of investors said they don’t believe the tariffs will affect their investments.

A total of 69% of investors surveyed work with a financial professional (34%) or dedicated financial advisor (35%) to manage their investments, while 25% manage their portfolios on their own and 7% have someone else in their family who looks after their investments. Across the board, investor confidence is highly correlated with professional guidance. Those who work with a dedicated financial advisor are least likely to say that the tariff news is causing them to rethink their strategies, while those who trade/invest on their own without any professional help are most likely to be rethinking their portfolios right now.

 

Quantifying the Effect of Tariffs on Investor Portfolios

When it comes to assessing the short- and long-term effects of the tariffs, 41% of investors believe they will negatively affect their portfolios during the next 12 months and 32% believe they will negatively affect their portfolios during the next five years. Interestingly, 49% of investors believe tariffs will either have a positive effect or no effect at all on their portfolios in the next 12 months and 52% believe the effects will be positive or neutral in the next five years.

 

Seeking Reassurance from Professionals

The lion’s share of investors have received proactive outreach from their advisors in response to the tariffs, with 57% of advisors reaching out via “low-touch” methods such as text messages, emails and letters, and 56% reaching out via “high-touch” methods, such as phone calls, video conferences and in-person meetings. In some cases, advisors reached out via both high-touch and low-touch methods. Despite this widespread multichannel outreach, 18% of investors said they have received no contact from their financial advisors following the tariff announcement. 

Some of those advisor interactions were more effective than others. The majority (52%) of investors said they were reassured by their advisors and believed they were well-guided through this period of volatility, but 31% said they were uncertain and did not feel like they had enough support. Another 7% said they were frustrated and not getting the guidance they need, and 10% were unsure.

 

Among self-directed investors who currently trade/invest on their own without any professional help, 40% indicated they were “probably likely” (27%) or “definitely likely” (13%) to work with an advisor in the next 12 months. That number rises to more than half of younger self-directed investors, including Millennial[1] and Gen Z respondents.

When it comes to taking action in response to the tariff-related volatility, 35% of investors said they are holding off until the market stabilizes, 28% said they are moving into safer assets such as bonds, cash and gold and 25% said they are diversifying their portfolios to spread risk.

 

Crisis Breeds Opportunity

Market shocks like the one we’ve been experiencing throughout the month of April create a moment of truth opportunity for investment professionals to demonstrate their ability to guide clients through a rational, practical process that is not overly swayed by emotion or fear. So far, in response to tariff-related market activity, advisor performance managing those emotions has been mixed. While a little more than half of investors feel like they are getting the guidance they need, there are a lot of people out there right now in a full-blown panic. Advisors need to communicate frequently and effectively to help their clients through these types of challenging market moves.

 

Find out More

This Wealth Intelligence Report is based on responses from 1,190 investors with at least $100,000 in investable assets. It was authored by Mike Foy, managing director of the wealth management practice at JD Power. Please contact us at the numbers below to connect with Mr. Foy or to learn more about the underlying research.

 

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

 

[1] JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2007).

Automotive Insights from Frank Hanley, senior director of auto benchmarking at JD Power

As elevated prices continue to strain household budgets and reduce purchasing power, vehicle shoppers are no exception to the financial pressure. High interest rates and challenging market conditions significantly affect affordability, forcing consumers to be more selective when choosing their next vehicle. Consequently, buyers shopping for mass market or premium vehicles are meticulously researching their options, placing particular importance on quality as a key factor in this major investment decision.

Vehicle manufacturers who can meet buyer expectations for new vehicle quality and promote a low-problem experience can pave the way for strong customer satisfaction and lasting loyalty.

This is clearly illustrated by the effect on Net Promoter Scores® (NPS)^[1] when problems are experienced in the first 90 days of ownership. Problem-free vehicles achieve high scores (90 for mass market, 91 for premium on a scale of -100 to 100). However, when owners have problems during this early period of ownership, these scores plummet (76 for mass market, 75 for premium), demonstrating the negative effect of early quality issues on customer sentiment and brand reputation.

With the high stakes of new-vehicle quality so apparent in customer satisfaction and brand loyalty, what steps can marketers take to proactively build a strong reputation among new and existing buyers?

Quality: A Core Driver for Vehicle Buyers

Quality is a key motivator for buyers of both premium and mass market vehicles. Premium buyers, often investing significantly more, understandably hold high quality expectations, where even minor issues like items being difficult to use or material defects can lead to significant dissatisfaction.

Quality is also a primary motivation for buyers of mass market vehicles. Early quality issues or defects damage the brand’s reputation among mass market buyers, who may have concerns then about the vehicle’s long-term durability.

Marketers at premium and mass market brands can tailor campaigns to address the expectations of shoppers by highlighting their commitment to delivering high-quality vehicles and integrating third-party credibility initiatives into their marketing strategies. 

Making quality a focal point of marketing campaigns can ease customer worries, enhance competitive differentiation and demonstrate value during the buying process.

Quality as a Differentiator: Actionable Marketing Insights

Given the critical importance of quality for both premium and mass market buyers, marketers can take proactive steps like: 

1. Empower Customers with Educational Materials

Providing accessible resources, such as guides, videos and expert tips on how to use complex features and optimize vehicle performance, can position the brand as a trusted partner within the first 90 days. This proactive approach not only enhances the ownership experience but also subtly reinforces the inherent quality of the brand by emphasizing usability and preventive care.

2. Be Proactive with Reputation Management 

While preventing all issues is impossible, proactive communication and resolution are key. Brands that swiftly address problems can mitigate damage to their reputation. Utilizing social listening tools to monitor online mentions allows for quick responses to negative feedback. Furthermore, providing excellent customer service with easy contact methods and reducing the burden of repairs (e.g., offering free loaner vehicles) demonstrates a commitment to customer satisfaction.

3. Focus on Vehicle Quality in Marketing Materials 

Mass market and premium buyers desire high-quality vehicles. Marketers can use that information to their advantage and highlight a vehicle’s quality in advertisements and customer communications. Providing evidence to support marketing claims, such as awards won by the brand for its high-quality vehicles, adds credibility that customers look for.

Final Thoughts

In today’s competitive automotive landscape, quality has become one of the highest priorities for new vehicle shoppers. By centering marketing strategies around quality and providing transparent, supportive communication, automakers can not only meet but exceed customer expectations. In doing so, brands can stand out from the competition and build stronger customer loyalty.

Discover which automakers and models will be awarded for new vehicle quality in their respective segments on June 26 with the release of the JD Power 2025 U.S. Initial Quality Study^SM (IQS). In the meantime, learn more about IQS, which provides insights into problems experienced within the first 90 days of new vehicle ownership, by clicking here.

 

^[1] Net Promoter System®, Net Promoter Score®, NPS®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

 

What do the next three months look like for the United States economy? 

That’s the question that’s seemingly on the tip of everyone’s tongue ever since the U.S. imposed sweeping tariffs on several countries around the world. Accordingly, bank customers in the U.S. are trying to figure out exactly what that will mean for their finances, particularly those who are struggling. 

According to JD Power data, 35% of customers are financially healthy,[1] a new 13-month high. But even as customers seem to be gaining some ground on the financial health front, many are expressing uneasiness about their future finances.

Financial Health Gets Another Boost

The number of customers who are financially healthy increased to 35%, a 13-month high. As observed between January and February, this trend may not be long-lasting, but after financial health was stagnant for so long, the fact that there has been more movement of late could be seen as a positive development. 

 

The percentage of bank customers who say the cost of goods is increasing faster than their income fell slightly to 66%. Stressed customers (83%) were most likely to say they are grappling with the cost of goods, up from 81%. Just 51% of healthy customers say they are having trouble keeping up with the cost of goods, down from 58%. 

 

 

Tough Times Ahead?

Less than half (43%) of customers say their current financial situation is stable and secure. That rate is virtually identical for customers under 40 and over the age of 40 (42% vs. 43%, respectively). 

 

Conversely, 41% believe their financial situation is at risk of getting worse in the next three months. While stressed customers (45%) were most likely to agree that their finances are at risk, healthy customers (42%) are not far behind.

 

 

When asked about the root of their fears, 63% believe that their cost of living will be worse in the next three months, while 34% say they will have trouble managing housing costs, and 26% say the stock market will decline and hurt their investments.

 

 

Rising to the Challenge

Customers have been operating under the specter of another economic downturn for years. And while that has never fully materialized, the most recent events have certainly sparked some concern. That is enough to get many customers wondering if this is finally the other shoe getting ready to drop.

As the U.S. sits down with various countries to negotiate these tariffs, those fears may soon be quelled. But regardless of the specifics of the next several months, one thing is certain: Customers will likely seek counsel in the entities they know best. Banks need to be prepared to step up in times of uncertainty and help customers navigate these unpredictable times. Those that can help will enjoy better customer relationships and financially healthier clientele. 

 

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in March 2025. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

 

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

 

[1] JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.