LANSING, Mich. — Traverse City business owners are noticing changes in consumer spending habits as economic concerns continue to impact Michigan residents.
- Consumer confidence declined almost 30% from December 2024 to May 2025, according to University of Michigan data.
- Traverse City business owners report customers are booking shorter stays and dining out less frequently.
- Recent data shows consumer sentiment began rising in June 2025, suggesting possible improvement.
WATCH: Michigan consumers tightening budgets amid economic uncertainty
"Everyone feels the squeeze," said Karen Roofe, a Traverse City business owner.
That squeeze on pocketbooks is affecting how often people are coming to shop in the northern Michigan tourist destination.
"They're booking shorter stays, they're dining out less," Roofe said.
On Wednesday, Democratic state Senators heard testimony on how residents are spending less due to the state of the economy and the uncertainty of tariff impacts.
Director of the University of Michigan's Surveys of Consumers Joanne Hsu told lawmakers that consumer confidence in the economy declined almost 30% from December 2024 to May 2025.
"The same factor that has been in place since the tail end of the pandemic, and that is purchasing power and cost of living," Hsu said.
"These pocketbook factors are top of mind for consumers."
But factors may be changing.
"The University of Michigan's report actually shows consumer sentiment rising in June of 2025, and I do think there's a growing optimism due to Trump's economic policies," said Senate Minority Floor Leader Aric Nesbitt.
On the Republican side, Nesbitt says reforms in policy could help residents feel confident in the economy.
"At the end of the day it's about pro-growth reforms like cutting regulations and taxes that spur the economy, grow confidence and allow Americans to dream and thrive," Nesbitt said.
Roofe hopes consumer confidence increases soon, so she and her neighbors see the financial impact.
"Our economy is deeply interconnected, so when our visitors spend less, the ripple effect hits our community members who rely on tourism," Roofe said.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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