Household Incomes Held Steady in Q4 as Hong Kong Consumers Prepared for Year Ahead
Consumers tightened budgets and strengthened financial buffers to balance macro easing and micro strain
- Despite labour market challenges, over half of Hong Kong consumers (55%) reported stable earnings over the past three months
- Cost of living remained the major concern, with consumers prioritising emergency funds and retirement savings while planning to tighten discretionary spending ahead of the upcoming holiday season
- Consumer sentiment toward credit changed in Q4 2025, with fewer viewing it as important for achieving financial goals
Global information and insights company and Hong Kong’s leading credit reference agency, TransUnion (NYSE: TRU), today released its Consumer Pulse Study for Q4 2025. The report revealed that despite ongoing labour market pressures, Hong Kong households continued to be resilient, with stable incomes underpinning cautious optimism and disciplined financial management. At the same time, consumers’ attitudes toward credit shifted amid an evolving macro-economic backdrop, with borrowing no longer regarded as a lifeline but a considered choice.
Stable incomes persisted despite labour market headwinds
While Hong Kong’s labour market came under pressure with unemployment hitting a three‑year high1 and youth joblessness elevated to 8% by the end of Q3 this year2, most families kept earnings intact in Q4 2025. Over half (55%) of Hong Kong consumers reported that their income stayed the same over the past three months, up three percentage points from last year. The proportion of surveyed respondents experiencing income decline over the same period eased to 12%, down from 14% a year ago. This pattern suggested that household earnings have flattened rather than fallen, indicating income stability among most Hong Kong families.
Meanwhile, Hong Kong’s broader economy held steady, with GDP expanding at 3% or more in each of the first three quarters of 20253. In this two‑speed economy, marked by solid output alongside a softer job market, consumers remained relatively confident about income prospects heading into 2026. A strong majority (87%) expected their income to increase or stay stable over the next 12 months, including nearly half (43%) who anticipated growth. These findings underscore that Hong Kong households are weathering economic uncertainties better than the headlines imply.
Consumers approaching holiday season with financial discipline and cautious confidence
In Q4 2025, income stability eased financial pressure for many households. Only a small minority (12%) expected that they would be unable to pay at least one of their current bills and loans in full, down from 20% a year ago and the lowest level in five quarters. This significant improvement aligned with a modest rise in optimism, as 54% of respondents expressed confidence in their financial outlook for the year ahead, up two percentage points from the same period last year. It signals a slight but clear shift that fewer households face immediate financial stress and are gradually becoming more forward‑looking.
However, the cost of living remains the primary pressure point for consumers. Six in ten (61%) respondents identified inflation on everyday goods as their top worry affecting household finances over the next six months, closely followed by job stability (60%). Notably, 42% said they felt moderately to very concerned about the impact of current or potential international trade tariffs on their household finances, while 48% pointed to rising product prices as the primary impact of tariffs.
In response to this mixed sentiment, consumers adopted a pragmatic approach to spending through Q3 2025 and carried it into year-end, reflecting greater financial discipline and heightened risk awareness. Over the past three months, 38% of consumers prioritised building emergency funds, while 20% increased their retirement savings. Looking ahead to the holiday season in coming months, only one in four (25%) planned to increase discretionary personal spending on dining, travel and entertainment, while 41% intended to tighten. This prudent management allows Hong Kong consumers to manage the tension between macro easing (positive income outlook) and micro strain (cost of living), while remaining quietly confident in their ability to navigate the future.
“With a majority of Hong Kong consumers reporting income stability despite economic headwinds such as rising unemployment, many households remain relatively optimistic,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion. “Balancing macro easing and micro strain, consumers are staying grounded and are reinforcing their resilience by strengthening financial buffers and exercising caution in near-term spending. The dual focus on disciplined saving and prudent consumption, particularly ahead of the holiday season, reflects a pragmatic approach to navigating potential inflationary pressures as households prepare for the year ahead.”
Credit sentiment shifted among consumers, with fewer viewing it as important for achieving financial goals
The study also revealed a notable change in consumer attitudes toward credit in Q4 2025. Less than half (48%) agreed that access to credit and lending products is very or extremely important for achieving their financial goals, down from 53% in Q4 2024. This shift was most evident among Gen Z4, where the share declined sharply from 70% to 54%.
Additionally, confidence in approval prospects also weakened among the youngest generation surveyed, with just 61% believing that they would be approved for a credit or lending product when needed, representing a notable 15 percentage point drop year-on-year (YoY). This underscores how higher borrowing costs and tighter employment conditions may have reshaped consumer sentiment toward credit, especially among young consumers.
“According to the latest Consumer Pulse Study, fewer consumers see credit as essential to their financial goals. Credit is now considered a calculated choice rather than a lifeline, shifting from necessity to negotiation. To better serve these consumers, lenders should focus on delivering more personalised solutions tailored to diverse needs, while maintaining streamlined processes and accessible engagement channels that enhance the overall experience,” said Sun. “Equally important is ongoing education on proactive credit monitoring to help consumers better understand their financial standing and support access, especially as younger generations show declining confidence in obtaining credit when needed. After all, when managed responsibly, credit remains a powerful tool for financial flexibility amid uncertainties and unlocking more opportunities across life stages.”
TransUnion’s Q4 2025 Consumer Pulse Study consisted of a survey of 979 adults 18 years of age and older residing in Hong Kong between 25 September and 6 October 2025. This quarterly study examines shifting consumer attitudes and behaviours based on the dynamics of income, debt, and identity theft. For more information, please view the full Consumer Pulse Study Q4 2025 Report.
