TransUnion’s quarterly survey explores consumer behaviors and attitudes about current and future household budgets, spending and debt. Discover valuable key takeaways from our Q2 2023 US Consumer Pulse Study. Watch the video on this page or download the report.
Full transcript below
The TransUnion Q2 2023 U.S. Consumer Pulse Study.
Consumer behaviors and attitudes about current and future household budgets, spending and debt. Our quarterly survey of 3,000 adult American consumers explores how their personal finances have changed and what changes they expect in the future.
Let's dive in.
The first key takeaway in our study shows consumer optimism is being driven by expected income increases and younger generations. In Q2 2023, 57% of Americans reported optimism about their household finances in the next 12 months, the highest since Q4 2021. Gen Z at 73% and Millennials at 69% were much more optimistic compared to Gen X and Baby Boomers. Up from 41% in Q1, more than half of Americans expected their incomes to rise in the next 12 months – led by a much higher percentage of Millennials and Gen Z.
Key takeaway number two shows that despite this positive outlook, our study found inflation has consumers in a recession state of mind. 79% reported inflation as one of their top three financial concerns, along with recession at 53% and increased housing prices at 45%.
Nearly half (46%) of consumers reported their incomes did not keep up with the rate of inflation and not surprisingly nearly the same percentage (44%) believed the U.S. economy is currently in a recession or will be by the end of June 2023.
Americans who reported inflation as a top three concern were much more negative about their financial future. In fact, 50% of the inflation concerned expected to reduce discretionary spending like dining out travel and entertainment in the next three months compared to 29% of all others.
Another key takeaway from the study was consumer credit appetite is rising. 32% of consumers reported they plan to apply for new or refinance existing credit in the coming year, an increase of three percentage points over Q1 2023 and six percentage points over Q4 2022.
Given ongoing inflation, it's understandable of those who said they'll apply for new or refinance existing credit. 53% reported interest in obtaining new credit cards and 27% in personal loans in the next year–both which provide instant access to money.
Would you like even more insights into a consumers’ view of finances and how they plan to participate in the economy in the coming months?
Visit transunion.com/consumer-pulse-study to download the report.