As the year 2026 approaches its midpoint, TransUnion's latest Consumer Pulse study reveals a complex picture of consumer sentiment in the U.S. Despite ongoing affordability challenges exacerbated by geopolitical tensions, a significant portion of consumers are maintaining an optimistic outlook on their financial futures.

1. Key Findings from the Consumer Pulse Study

The study, which surveyed nearly 3,000 U.S. adults between April 23 and May 11, 2026, found that 55% of respondents remain optimistic about their household finances for the upcoming year—unchanged from the previous year. This optimism contrasts with a noticeable decrease in financial pessimism, which dropped to 23%, down from an all-time high of 27% in Q2 2025.

Generational Insights: Optimism and Pessimism

Breaking down the data by generation provides further insights into consumer sentiment:

Generation	Optimistic (%)	Pessimistic (%)
Overall	55%	23%
Gen Z	68%	15%
Millennials	63%	18%
Gen X	52%	26%
Baby Boomers	44%	28%

Interestingly, Gen Z leads the charge in optimism, with 68% expressing confidence in their financial situation, while Baby Boomers exhibit the highest levels of pessimism at 28%. However, it is noteworthy that Baby Boomers experienced the most significant year-over-year drop in pessimism, down from 36% in Q2 2025.

2. Affordability Concerns: Inflation Takes Center Stage

While optimism remains steady, affordability continues to be a pressing issue. Over 80% of consumers identified inflation as one of their top three financial concerns, marking a slight increase from the previous year. This concern is particularly pronounced among Gen X and Baby Boomers, who report heightened anxiety over rising costs.

Rising Costs: A Closer Look

In terms of specific spending categories, consumers ranked their top concerns as follows:

Grocery Prices: 80%

Gas Prices: 71% (up from 37% in Q1 2026)

Housing Costs (rent/mortgage): 42%

Recession Fears: 51%

Interest Rates: 42%

Consumers reported significant affordability challenges across various spending categories, with gas, dining out, and travel-related purchases being deemed the least affordable. Notably, Gen X reported the most acute pressure, with only 63% indicating their household finances were as planned or better, in stark contrast to 74% of Gen Z respondents.

3. Credit Trends: A Decline in New Applications

The study also highlighted a shift in consumer behavior regarding credit. Only 28% of consumers plan to apply for new or refinance existing credit, a decrease from 33% in Q2 2025. This trend is particularly evident among younger generations, with both Gen Z and Millennials reporting a five-percentage-point decline in credit application intentions.

Interestingly, Gen X stands out, with 65% of those planning to apply for credit indicating they will pursue a new credit card, a significant figure compared to other age groups.

Interest Rates and Consumer Behavior

Concerns regarding interest rates also play a crucial role in credit decisions. Among consumers who view interest rates as a top financial concern, 31% plan to apply for or refinance credit within the next year, compared to 27% of those without such concerns.

4. Conclusion: A Complex Landscape of Consumer Sentiment

TransUnion's Q2 2026 Consumer Pulse study paints a nuanced picture of the American consumer landscape. While optimism about financial futures persists, affordability challenges, primarily driven by inflation, continue to weigh heavily on the minds of consumers. As the economy evolves, understanding these dynamics will be crucial for businesses and financial institutions looking to navigate the changing landscape effectively.

Charlie Wise, head of global research and consulting at TransUnion, encapsulated the sentiment: “Affordability has become the defining issue shaping consumer finances today, yet consumers remain remarkably resilient.” The resilience exhibited by consumers amid economic pressures will be a critical factor to watch as the year progresses.

Original press release