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

Many consumers are interested in applying for loans or refinancing existing ones in order to increase liquidity.
Pexels/Kaboompics.com
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.
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.
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.
Originally posted on Auto Dealer Today
More Industry

Structure Leads to Optimized Auto Listings
As the average car-buying journey has shifted to a blend of digital and retail, a dealership’s vehicle listings must be optimized to answer shoppers’ questions clearly and accurately.
Read More →
Consumers Mixed on Economy, Finances
A July survey shows spotty sentiment of current and future conditions, in addition to demographic differences as overall opinion of present circumstances kept sliding.
Read More →
EVs Closing the European Gap
Electrified powertrains led June new-vehicle sales in Europe, reaching 26% of the market.
Read More →
Early Intervention Saves Retention
Sales and service departments have the highest annual dealership turnover rates, according to a new industry report, costing money and time that could be better spent elsewhere.
Read More →
Autos More Appealing
Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.
Read More →
Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →