TransUnion Consumer Pulse Report Q4 2024

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.

Consumer optimism drops despite inflation decrease

In an increasingly stable economy, with the Consumer Prices Index including owner occupiers’ housing costs (CPIH) dropping to 2.6% in September1, consumers should be breathing a sigh of relief. However, it’s increasingly clear consumer perception is diverging from the improving underlying economic indicators, and the prevailing sentiment is one of mounting pessimism

Holiday spend divide

Consumer spend intentions going into the holiday shopping period give us crucial insight into the current state of consumer finances. In this sense, there remained a deep divide between high-income consumers and the rest of the population. Sixty-seven percent of high earners were planning to maintain or increase their discretionary spend in the next three months. Whereas 43% of low- and middle-income earners (below £79,999 annually) were planning to cut their spend further over the next three months. Just 16% of low- and middle-income earners were intending to increase their spend over the period.

Attitudes and behaviour to manage financial choices

More than three quarters (79%) believed monitoring their credit report is important, with 54% of all respondents having said they do so at least quarterly. Both of those statistics increased amongst younger generations: 87% of Gen Z believed credit monitoring is important, and 65% said they checked their credit report at least every month and 73% quarterly.

Among respondents who said they monitor their credit reports, when asked why they do so, 36% said they were trying to improve their credit scores, while 6% cited they were denied credit and encouraged to check their reports. Though for most consumers, the concept of regular credit monitoring is still fairly new (48% of respondents said they started monitoring only in the last two years), most likely emerging thanks to increased ease enabled by app access.