TransUnion released its Q2 Consumer Pulse Study last week, and the data tells an interesting story. Even as unaffordability rises — with inflation and slowed income growth fueling the fire — consumers remain cautiously optimistic.
[Read: ]
Consumers Are Unable to Keep Up with Inflation
Consumers are far more anxious now than they were just a few months ago. About 71% of consumers said they were very concerned with rising gas prices — a 90% increase from the first quarter of 2026.
When asked about their household income, 42% of consumers said their income was not keeping up with inflation, compared with 34% who said it was. Perhaps unsurprisingly, high-income consumers said their income kept up with inflation, unlike their medium- and low-income counterparts (45% compared with 35% and 23%, respectively). This is to be expected in a .
Inflation on everyday goods — such as groceries and gas — is the biggest concern affecting consumers’ household finances in the next six months, at 83%. Recession worries (51%), housing prices (42%) and interest rates (42%) trailed behind as the next top financial concerns.
Gen X Is Feeling the Financial Squeeze the Most
Consumers were asked what categories were unaffordable, which ranged from gas and travel purchases to groceries and household items. Gen X reported the highest level of unaffordability across every category.
[Read: ]
Appetite for New Credit Wanes
Only 28% of consumers said they plan to apply for new or refinance existing credit this year, compared with 33% in Q2 2025. Gen Z and millennials showed the biggest drop, with plans for credit down to 45% from 50% a year ago.
As one might expect, consumers who said they were concerned about inflation expressed more reticence about credit, with only 25% planning on new or refinanced credit in the next year, compared with 47% among all others.
“While consumers report less interest in applying for or refinancing credit, our proprietary data shows demand remains healthy,” said Charlie Wise, head of global research and consulting at TransUnion. “At the same time, consumers often take on more credit during periods of economic pressure as a safeguard against potential shocks such as job loss.”
[Read: ]
Optimism Despite It All
Despite mounting worries, consumers remain resilient. More than half (55%) said they were optimistic about their household finances in the next 12 months, unchanged from last year.
However, optimism declined with age as Gen Z (68%) and millennials (63%) had a significantly more positive outlook compared with their Gen X (52%) and baby boomer (44%) counterparts.
More from U.S. News
originally appeared on
