TransUnion's Q2 2022 US Consumer Pulse Study Released
We’ve just released the latest TransUnion US Consumer Pulse Study — a quarterly survey exploring how consumers’ personal finances have changed and what changes they expect in the future. Here are the key takeaways:
Financial optimism drops despite income positivity: With a slight drop from Q1 2022 (4 percentage points), 55% reported optimism about their household finances in the next 12 months. Inflation for everyday goods (groceries, gas, etc.), recession and housing costs are weighing on consumer confidence; Americans said respectively, these were the first, second and third biggest concerns regarding household finances for the rest of 2022. Despite this, income appears strong with 81% of respondents having reported their income stayed the same or increased in the past three months, and 90% expected the same in the coming year. This data juxtaposition could indicate consumer concern about spending power.
Inflation eating household budgets: Nearly all Americans (95%) reported being concerned about inflation and 38% were extremely concerned (up 11 percentage points from the first time asked in Q3 2021). In fact, 64% of all Americans expected to change spending because of inflation. Of those, 52% said they’ll cut discretionary spending (dining out, travel, entertainment) compared to 40% overall; 41% retail shopping (32% overall); and 40% making large purchases (32% overall) in the next three months. Despite equally high levels of inflation concern, 3% more Millennials overall reported plans to increase discretionary spending in the next three months, while 31% more of Baby Boomers plan to decrease discretionary spending.
Fear of recession despite strong job performance: Recession concerns aren’t tied to jobs. Reported changes in job status and hours worked remained consistently positive from the previous quarter. Slightly more people reported starting a new job or business (16%) than claimed losing a job or quitting (15%) in the last three months.
Housing costs and interest rates not slowing home buyers: Among those who said they plan to apply for new credit or refinance existing credit in the next year, 32% reported they will apply for a mortgage, a four-percentage point increase from Q1 2022.