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Consumer Pessimism Grows

Survey finds increased concern about tariff effects on finances, potential of a recession.

June 18, 2025
Consumer Pessimism Grows

Many consumers are interested in applying for loans or refinancing existing ones in order to increase liquidity.

Credit:

Pexels/Kaboompics.com

2 min to read


More Americans are worried about their finances and a potential recession over the next 12 months, a recent poll found.

The May TransUnion survey of about 3,000 consumers showed a six percentage point quarter-over-quarter gain to 27% who feel pessimistic about near-term household finances. That’s the greatest share since the consumer credit reporting agency started tracking the metric in the first quarter of 2021.

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Optimism among polled consumers, meanwhile, fell three percentage points to 55%, the most optimistic generations still being Y and Z. 

TransUnion blames uncertainty about the effects of fast-shifting U.S. trade policy for the reduced optimism, 87% of respondents having some level of concern about import tariffs’ effect on their finances.

Many consumers therefore are interested in applying for loans or refinancing their current ones, TransUnion said, including for increased liquidity via their existing credit cards, applying for personal loans or tapping buy-now-pay-later services.

TransUnion credits the majority of consumers who are still optimistic to still-strong employment and healthy wage increases.

“If you have a job and feel like you’re likely to get some form of pay increase over the next year, then you also will likely be able to manage through most possible scenarios for increases in the costs of goods and services,” said Head of Global Research and Consulting Charlie Wise.

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Still, more consumers now fear a recession – 52% of respondents saying it’s among their top three concerns over the next 12 months, or the greatest share in two years.

DIG DEEPER: Auto Dealers Dim on Market Future

Originally posted on Auto Dealer Today

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