Majority of Americans Optimistic About Their Financial Future Despite Challenges Brought on by Inflation and Fears of a Recession
TransUnion's Consumer Pulse study reveals that 55% of Americans remain optimistic about their financial future despite rising inflation and recession fears. However, optimism has decreased from 64% at the end of 2021. Inflation is the top concern for 63% of respondents, while 30% worry about a recession. The study shows a strong job market, with 81% of participants reporting stable or increased income, yet 95% are concerned about inflation. Notably, 33% plan to apply for new credit within a year, reflecting shifting spending patterns.
- 81% of respondents reported stable or increasing income, with 90% expecting the same in the coming year.
- Most consumers are optimistic, with a strong job market reflected in a 3.6% unemployment rate.
- Optimism dropped from 64% at the end of 2021 to 55% in Q2 2022.
- 95% of Americans expressed concern about inflation, including 38% who are extremely concerned.
TransUnion’s Consumer Pulse study finds inflation is the greatest concern
CHICAGO, June 08, 2022 (GLOBE NEWSWIRE) -- More than half of Americans (
The study found that inflation is the greatest worry for Americans – by a wide margin – with
The results from the May 12-19 survey of 2,739 adults found that concerns differed based on generation. Stock market volatility is a much greater concern to Baby Boomers compared to all other generations whereas Gen Z had an outsized concern about jobs. The study also found that the youngest generations were most positive about their financial future with
Optimism Levels and Top Concerns By Generation
Generation | Percent Optimistic | Top Concern | 2nd Greatest Concern | 3rd Greatest Concern | |
Overall | 55 | % | Inflation | Recession | Housing/Rental Prices |
Gen Z | 66 | % | Inflation | Housing/Rental Prices | Jobs |
Millennials | 70 | % | Inflation | Recession | Housing/Rental Prices |
Gen X | 55 | % | Inflation | Recession | Housing/Rental Prices |
Baby Boomers | 39 | % | Inflation | Recession | Stock Market Volatility |
“It’s clear that Americans are facing many tests, whether it’s inflation, high housing and rental costs, rising interest rates or fears of a recession, but there’s also strong evidence that consumers are weathering this excess of challenges,” said Charlie Wise, senior vice president and head of global research at TransUnion. “The majority of consumers are still optimistic. Jobs are plentiful and many consumers have seen material increases in their income over the past year, particularly those in lower income tiers. This has helped consumer credit performance remain steady – all reasons for optimism.”
The study found that income appears strong with
Spending Patterns May Shift in the Near-Term
Despite the many positives in today’s consumer credit market, nearly all Americans (
About two-thirds (
Overall,
Of those who plan to apply for new or refinance existing credit within the next year,
“We are living through an unconventional period wherein consumers are facing more financial challenges than they have in at least a decade. Yet the job market is strong and most people are using the credit they have in a responsible manner,” said Margaret Poe, head of consumer credit education at TransUnion. “This also is a time when consumers should remain diligent about their credit and put into practice healthy habits such as making on-time payments and keeping credit utilization at
The complete Consumer Pulse study can be viewed here. See TransUnion’s blog for tips about how to manage your credit if you're relying on credit cards more.
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TransUnion | |
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FAQ
What does TransUnion's Consumer Pulse study reveal about financial optimism in Q2 2022?
What are the primary financial concerns of Americans according to the Consumer Pulse study?
How are spending patterns expected to change due to inflation?
What percentage of respondents in the study plan to apply for new credit within the next 12 months?