TransUnion Reports Increased Pessimism Among U.S. Consumers Regarding Household Finances Amid Tariff Concerns

TransUnion's Q2 2025 study shows rising consumer pessimism about finances, influenced by tariff concerns and economic uncertainties.

Quiver AI Summary

A recent TransUnion Consumer Pulse study reveals growing consumer pessimism regarding household finances, with 27% of U.S. consumers expressing concerns about their financial situations over the next year, up from 21% in Q4 2024. This rise in pessimism coincides with increased fears regarding tariffs and their potential impact on costs, leading 87% of respondents to express some level of concern. Despite this, overall optimism remains stable at 55%, reflecting a resilient job market and wage growth, particularly among younger consumers. Additionally, worries about a recession have risen, with 52% listing it as a top financial concern, though historical trends suggest consumers may be overly cautious. The study highlights a significant interest in securing credit as a protective measure against potential economic challenges.

Potential Positives

• The TransUnion Consumer Pulse study indicates that despite rising pessimism, 55% of consumers remain optimistic about their household finances over the next 12 months, maintaining the same percentage as Q2 2024.
• The study reveals a significant interest in securing credit products, particularly among consumers concerned about tariffs, suggesting a potential increase in demand for TransUnion's credit services.
• The data highlights strong employment and sustained wage gains as factors contributing to consumer optimism, aligning with TransUnion’s focus on providing solutions that bolster economic confidence.

Potential Negatives

• 27% of U.S. consumers are now pessimistic about their household finances, marking the highest level of pessimism since Q1 2021.
• Despite sustained confidence in employment and wage growth, fears of recession have increased significantly, with 52% now listing it as a top concern, the highest in two years.
• 87% of Americans reported concern over tariffs affecting their household finances, indicating potential difficulties in consumer sentiment and economic stability.

FAQ

What are the key findings of the TransUnion Q2 2025 Consumer Pulse study?

The study reveals 27% of U.S. consumers are pessimistic about their finances, with rising concerns about tariffs impacting financial outlooks.

How are consumers feeling about their household finances in 2025?

Despite increased pessimism, 55% of consumers remain optimistic about their household finances over the next year, unchanged from 2024.

What impact do tariffs have on consumer sentiment?

87% of Americans express concern about tariffs affecting their finances, with many planning to apply for or refinance credit products.

Which generation shows the most optimism about future finances?

Gen Z and Millennials are the most optimistic, with 67% and 64% respectively seeing positive financial prospects ahead.

What are the main financial concerns of American consumers?

Inflation is the top concern for 81% of Americans, while 52% worry about a potential recession in the next 12 months.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

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Full Release

CHICAGO, June 18, 2025 (GLOBE NEWSWIRE) -- As tariffs and the potential for rising cost of goods have dominated the news cycle since early April, a new TransUnion (NYSE: TRU)

Q2 2025 Consumer Pulse study

found that 27% of U.S. consumers are now pessimistic about their household finances over the next 12 months. This marks a six-percentage point rise from Q4 2024 (21%) and a four-percentage point increase from a year ago (23%). It’s the highest level since TransUnion first began tracking this data point in Q1 2021.

Despite the rise in pessimism, 55% of consumers are optimistic about their household finances over the next 12 months – the same percentage as in Q2 2024. However, optimism has declined from 58% in Q4 2024. The youngest consumers surveyed – Gen Z and Millennials – remain most optimistic about future finances, at 67% and 64%, respectively. The findings are derived from a survey of 2,998 American adults between May 1-12, 2025.

“Since early April, there has been a marked increase in the level of uncertainty about future costs primarily due to the ongoing discussions about tariffs,” said Charlie Wise, senior vice president and head of global research and consulting at TransUnion. “While we’ve seen a rise in pessimism about future finances, it can’t be overstated that the same percentage of Americans are as optimistic about their future finances today as they were at this same time last year. We posit this is happening because of the continued strong employment picture and sustained wage gains. If you have a job and feel like you’re likely to get some form of pay increase over the next year, then you also will likely be able to manage through most possible scenarios for increases in the costs of goods and services.”

Comparing Optimism and Pessimism Levels in the Last Year by Generation; Tariff Impacts

*Q2 2025 is the first time this question was included in the Consumer Pulse study.

Impact of Tariff Concerns on Credit Market

Nearly nine in 10 Americans (87%) reported some level of concern about the impact of current or possible tariffs on their household finances; 41% said they were very concerned. To that end, the Consumer Pulse study found that consumers now have an increasing interest in securing credit products.

Of those consumers who were

very concerned

about tariffs, 37% planned to apply for new credit or refinance existing credit in the next year, a higher rate than all others (30%) who planned the same. Liquidity credit products which provide access to cash, including credit cards and personal loans, appeared to be a greater preference for those who are tariff concerned. Specifically, this group is interested in increasing available credit on existing credit cards, applying for a personal loan and using buy now, pay later payment services.

“When there is uncertainty in the market, this often results in consumers seeking new credit to ensure they are prepared for any future financial hurdles. While it’s not clear just how much of an impact tariffs will have on consumer wallets, it is clear that those consumers who are most concerned about them are more likely to be preparing for the future through myriad credit options,” said Wise.

Recession Fears Return, But are Consumers Simply in ‘Rinse and Repeat’ Mode?

While inflation continues to be the top financial concern of Americans – 81% ranked it as a Top 3 concern in the next 12 months – there was a pronounced increase in fears of a recession. This metric jumped seven percentage points from Q2 2024 with 52% saying it was in their Top 3 financial concerns over the next 12 months — its highest level in two years. In Q4 2024, fears of a recession stood at 43%.

While recession anxieties are growing, Americans were even more worried two years ago, when 53% of respondents rated it as one of their Top 3 concerns. At that time, 75% of Q2 2023 Consumer Pulse study respondents said they believed the country would be in a recession by the end of 2023. In comparison, 72% of this quarter’s respondents believe there will be a recession by the end of 2025. No recession ever occurred in 2023 or has over the ensuing two years, according to the U.S. Bureau of Economic Analysis.

“Fears of a recession should never be discounted. However, history has a way of repeating itself. To this end, consumers are being pragmatic and considering the news of the day. As tariff discussions bring uncertainty, so do increased fears of economic setbacks. Yet, just like we saw in the second quarter of 2023, there are a lot of positives about the economy and the consumer credit market at-large. One thing is certain – we should expect to see more shifts in consumer sentiment in the coming months,” concluded Wise.

For more information about the Consumer Pulse study, please

click here

.

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good

^®

— and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

http://www.transunion.com/business

Contact

Dave Blumberg

Email


david.blumberg@transunion.com

Telephone

312-972-6646

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.