What CEOs from auto, housing, travel and ad markets are saying about tariffs, consumer spending and the economy

Consumer sentiment declined to its second-lowest level on record last week, indicating a shaky outlook on spending. Data from credit card transactions also shows that many Americans are beginning to cut back on their purchases.

Some companies such as Walmart, Microsoft, and Subaru have warned about possible price hikes due to tariffs, which might cause price-sensitive consumers to reduce their spending even further. Nonetheless, there are sectors and companies witnessing strong demand, particularly following the recent rebound in the market after the pause on Trump’s tariffs, including the steepest China import taxes.

According to Frontier Group’s CEO Barry Biffle, consumers are returning with strong momentum. At the CNBC CEO Council Summit, CEOs from various industries shared their perspectives on the economy, with a focus on consumer spending areas like homebuilding, car purchases, advertising, and travel.

Taylor Morrison, a homebuilder and developer, is experiencing significant interest in new homes, particularly from older buyers with substantial assets. CEO Sheryl Palmer noted a shift in this group’s behavior post-COVID, where they prioritize enjoying life to the fullest. While these buyers show no signs of financial strain, first-time homebuyers are more cautious due to rising prices and interest rates.

Carvana’s CEO Ernie Garcia mentioned that the surge in car purchases driven by tariff fears has tapered off, with used car prices stabilizing. Consumer credit remains steady across different age groups of buyers.

Pinterest’s CEO Bill Ready highlighted a trend towards budget-friendly items on the platform, reflecting increased consumer caution amid potential cost increases. The entertainment and travel industries are still seeing strong demand, with NFL Commissioner Roger Goodell and Marriott International CEO Anthony Capuano noting continued enthusiasm from sports fans and travelers.

Marriott’s global operations have experienced a travel boom, especially among young people, despite concerns over consumer confidence. Capuano emphasized the importance of job creation and low unemployment rates in maintaining consumer optimism and stability for businesses like Marriott.