Global Military Spending Reaches $2.9 Trillion in 2025 as US Consumer Confidence Drops to Record Low

Global military spending climbed to $2.89 trillion in 2025, up 2.9% from the previous year, according to a report from the Stockholm International Peace Research Institute (SIPRI). This marked the 11th consecutive year of growth, with spending as a share of global gross domestic product reaching 2.5%, the highest level since 2009.

The increase occurred despite a 7.5% decline in US military expenditure linked to a halt in new financial aid to Ukraine. Multiple sources confirmed the overall rise, fueled by rearmament and insecurity in various regions. SIPRI data showed expenditures continuing an upward trend that began in 2015.

In the United States, consumer confidence dropped to a record low in April, with preliminary data from the University of Michigan's Survey of Consumers showing an 11% decline to 47.6. This figure fell below levels seen during the Great Recession and the pandemic.

The final reading adjusted slightly upward to 49.8, but remained well below March's 53.3. The survey attributed the decline to anxieties over the war in Iran, inflation, and economic uncertainty. Responses were collected before a ceasefire announcement with Iran this week.

“Open-ended comments show that many consumers blame the Iran conflict for unfavorable changes to the economy." — Joanne Hsu, survey director, April 2026 (New York Post). Demographic groups across age, income, and political affiliations all reported setbacks in sentiment. Short-term inflation expectations jumped to 4.8%, the largest monthly increase in a year, following new tariffs.”

Despite the low confidence scores, US consumer spending held steady. Retailers reported solid sales gains in March, and first-quarter bank earnings indicated stable household finances. Long-term inflation expectations rose modestly to 3.4% from 3.2%. Economists noted potential improvements in sentiment once supply disruptions from the Iran conflict ease and gas prices stabilize.