TransUnion Consumer Pulse Report Q4 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

Optimism holds — even as “sticky” inflation dominates headlines

Consumer confidence rose slightly: 44% said they’re optimistic about their household finances in the next 12 months, up from 42% in Q3 2025 and the all-time low of 26% in Q3 2022. However, this optimism was tempered by persistent inflation¹ and increasing unemployment² ; factors that help explain why sentiment is improving but not surging.

There also appeared a notable divide in optimism between the haves and have nots: 74% of high earners (greater than £80,000 a year) were optimistic versus just 36% of low-income households (less than £30,000K a year). While Gen Z had the highest optimism among generations surveyed at 74%, they were also on the higher end of those with expected payment struggles; 22% expected to be unable to pay at least one of their current bills and loans in full as opposed to 7% of Baby Boomers.

Overall, inflation remained the top household financial concern by far as 84% ranked it in their top three. Even so, fewer said they’re cutting back on discretionary spending: 46% stated they cut back on it in the last three months, down from 51% a year ago. The shift suggests cautious confidence but not yet a full recovery from the lowest point of optimism.

Credit access rises while credit demand cools

More consumers now feel they have sufficient access to credit and lending products (59%, up from 53% a year ago), but fewer plan to borrow. Less than a quarter (22%) intend to apply for or refinance credit in the next year, down from 24% in Q3 of this year. This suggests a long-awaited shift in the credit market, with an apparent greater supply of credit finally starting to put a dent in the consistently high demand from consumers.

Wages flatline as job concerns creep in

With unemployment on the rise and jobs vacancies waning³, the percentage of consumers who had jobs in their top three household financial concerns for the next six months now sits at 32%. In the short term, the effect appears minimal as 43% expected higher income over the next year (mostly on par with Q4 last year when it was 42%) and 23% reported their income rose in the past three months (the same as last year). Nonetheless, the effect of a soft employment market could have an impact  across consumer optimism, spend and credit demand in upcoming quarters.

From Inflation to Identity Theft — See What’s Shaping Consumer Confidence by downaloading the Q4 report.