• Fewer consumers expected income growth in the coming year compared to a year ago, with nearly one-third (30%) saying earnings are not keeping pace with inflation
• 35% said they recently reduced discretionary spending and 37% boosted emergency savings, with future spending expectations increasingly focused on essentials
• Intent to apply for new credit or refinance fell sharply from 42% in Q2 2025 to 27% in Q2 2026, despite strong confidence in credit access

Global information and insights company and Hong Kong’s leading credit reference agency, TransUnion (NYSE: TRU), today released its Consumer Pulse Study for Q2 2026. The report revealed that Hong Kong consumers were adopting a more cautious approach towards finances amid prevailing economic uncertainty and moderating income prospects. Although borrowing intentions declined as most consumers exercised greater prudence and selectivity in taking on additional debt, Gen Z¹ continued to demonstrate stronger credit demand than other generations.

Softened Income Outlook and Lingering Financial Concerns Among Hong Kong Consumers

In Q2 2026, Hong Kong consumers showed a more cautious income outlook than last year, shaped by softer reported current earnings and weaker expectations. According to the study, 64% of consumers reported their income was unchanged or had declined over the past three months, up eight percentage points from the same period last year. This moderation is also reflected in consumers’ more conservative expectations, with fewer than half (42%) expecting their income to increase over the next 12 months, down from 49% a year ago. Meanwhile, close to 60% anticipate no change or even a decline in income over the next year – 45% foresee no change and 13% a decrease. This is up from Q2 2025, when 51% of consumers expressed a similar sentiment (38% no change, 14% decrease).

Against this backdrop, financial pressures also remain persistent as respondents identified recession (56%), job security and inflation on everyday goods (both at 55%) in their top three biggest concerns affecting household finances over the next six months. These worries might have been driven by ongoing geopolitical pressures and labour market uncertainty, despite growing economic activities and relatively strong GDP growth of 5.9% in Q1 2026².

Notably, while Hong Kong’s inflation remained moderate at 1.7% from February through April 2026^3,4, nearly one-third (30%) of respondents reported their income is unable to keep pace with inflation, coinciding with upward pressure on international oil prices that led to higher electricity, gas, water and transport costs in the city.

Households Adjust Spending and Cashflows To Manage Higher Living Costs

Despite a year-over-year (YoY) moderation in income growth and persistent financial concerns, more than half (55%) of consumers still expressed optimism about their household finances over the next 12 months. The positive sentiment aligned with a large majority (87%) expecting to pay off all current bills and loans in full, with a remarkable eleven percentage point surge from Q2 2025.

This confidence is likely underpinned by stronger cashflow management and more disciplined spending among Hong Kong consumers. Over the past three months, households have adopted more deliberate budgeting, with over one-third (35%) reporting cutting back on discretionary spending like dining out, travel and entertainment. At the same time, those who said they increased spending in these areas fell from 29% to 21%, while 37% reported increasing contributions to emergency savings.

Looking ahead, a similar prudence is also evident in planned spending. More than one quarter (28%) anticipate higher payments on bills and loans across key categories such as housing, utilities, insurance and credit cards, as well as higher contributions in retirement funds and investments over the next three months. Meanwhile, 27% expected a rise in medical care and services costs, suggesting a stronger focus on essential consumption needs. These were the categories that consumers said they would increase spending on the most in the short term. At the same time, consumers continued to show greater caution towards big-ticket items such as cars and appliances, with 38% planning to scale back large purchases, the highest percentage decrease among categories analysed.

“While Hong Kong's overall economic performance remains comparatively strong, a more guarded income environment and persistent cost of living pressures, along with the potential for rising household expenses amid evolving macroeconomic conditions, continue to weigh on consumer sentiment,” said Weihan Sun, senior director of research and consulting for Asia Pacific at TransUnion. “What stands out in this environment, however, is the sustained financial discipline evident across households. Consumers actively review and adjust their financial arrangements in response to emerging concerns. This prudent, forward-looking approach directly reinforces financial resilience and represents a genuinely encouraging sign for the broader consumer outlook.”

New Credit Demand Retreated Amid Heightened Caution

Hong Kong consumers’ prudent financial management also extended to their approach to credit. In Q2 2026, consumer confidence in credit access remained strong, with 57% agreeing they had sufficient access to credit and lending products, slightly up from 55% a year earlier. Meanwhile, 67% believed they would be approved for a credit or lending product if needed, rising from 63% in Q2 2025. However, this positive sentiment did not translate into stronger borrowing appetite, as intentions to apply for new credit or refinance fell sharply to 27%, down 15 percentage points YoY. The decline indicates that Hong Kong households have become more selective and cautious about taking on additional debt.

This retreat in credit demand also reflected a drop in the perceived importance of credit. The share of consumers who view credit and lending product access as extremely or very important in achieving their financial goals eased slightly to 51% from 56% a year ago. Millennials and Gen X recorded the largest declines in perceived importance, while Gen Z remained comparatively resilient, with 61% still viewing credit as extremely or very important, reinforcing younger consumers’ continued appetite for credit to achieve financial mobility.

In terms of product preference, among those who planned to seek credit in the next year, borrowing remained concentrated in consumption-led unsecured products: 51% intended to apply for a new credit card, 28% planned to use buy now, pay later payment services (known as interest-free instalment payment plans in Hong Kong) and 27% expected to request credit line increases.

“Although overall credit intentions have eased, as reflected in the latest Consumer Pulse Study, sustained engagement among Gen Z and continued interest in consumption-led unsecured products show that credit has not lost its relevance,” said Sun. “Rather than framing credit as something to be avoided entirely for prudent financial management, responsible use is the key to preserving its value as a practical resource, especially in times of uncertainty. This approach begins with a clear understanding of one’s credit health, with regular review as the foundation, so that consumers can make more confident, informed financial decisions and prepare for any unexpected shocks, ultimately strengthening long-term household financial resilience.”

TransUnion’s Q2 2026 Consumer Pulse Study consisted of a survey of 973 adults aged 18 and older residing in Hong Kong between 29 April and 10 May 2026. 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 Q2 2026 Report.

¹ Generations are defined in this research as follows: Gen Z, 18–29 years old; Millennials, 30–45 years old; Gen X, 46–61 years old; and Baby   Boomers, age 62 and above

² Hong Kong Economy: Latest Developments

³ News.gov.hk: Inflation at 1.7% in Feb

⁴ News.gov.hk: Apr inflation holds at 1.7%