TransUnion Consumer Pulse Report Q2 2025

TransUnion’s quarterly survey explores how consumers’ personal finances have changed and what changes they expect in the future. The study measures shifting consumer attitudes and behaviours based on the dynamics of income, debt and identity theft. The analyses and insights give consumers a voice and inform businesses’ decision-making as they seek to create economic opportunity for consumers.

Cautious consumer optimism

Even amid economic pressures from possible trade wars, regional tensions and persistently high inflation, consumers appeared to be increasingly optimistic about the future state of their finances. Reflecting a slight improvement, 43% of consumers were optimistic about their household finances in the next 12 months, up from 41% in Q1 and well up from a low of 26% in Q3 2022. An even greater improvement was found among younger generations: Gen Z showed the largest year-over-year (YoY) optimism increase with 64% feeling optimistic compared to 55% in Q2 2024.

Despite optimism, inflation fatigue persists

The long shadow of high inflation, high interest rates and a weakening job market continued to impact how consumers spend and handle their finances — even as official indicators hinted at stabilisation.¹ Inflation remained the dominant financial worry for UK consumers: A striking 85% ranked inflation for everyday goods among their top three financial concerns in the next six months, unchanged from a year ago. UK consumers also continued to tighten their belts as nearly half (47%) reported cutting back on discretionary spending (e.g., dining out, travel and entertainment) in the past three months, and 41% expected to reduce it further in the next three months. This sustained restraint suggests many households remain focused on financial resilience rather than recovery.

Gen Z in the crosshairs as fraud attempts surge

Fraud is hitting UK consumers hard — and Gen Z hardest. In Q2 2025, 47% of consumers reported being targeted by email, online, phone call or text messaging fraud in the last three months, with 5% falling victim. Among Gen Z, that figure soared to 61%, much higher than any other generation surveyed and up from 49% a year ago. Among all surveyed who said they were targeted, phishing (45%), smishing (39%) and vishing (35%) remained the top fraud schemes reported. Despite the fraud risk, many consumers remained unprepared: Only 17% reported freezing their credit after being affected by a data breach in the last three months and 41% said they took no action within the last 60 days in response to cybersecurity concerns. Alarmingly, over half (55%) of those who reported doing nothing said they simply didn’t know what to do. 

Get the full Q2 insights by downloading our Consumer Pulse Report.