Hong Kong consumers are adopting a cautious financial stance according to TransUnion's Q2 2025 Consumer Pulse Survey. Amid complex economic conditions, residents are implementing a dual-track strategy: tightening short-term discretionary spending while balancing long-term financial planning to enhance resilience.

Notably, 44% reported increased income over the past three months – a significant 15-percentage-point jump from last year's 29%. This upward trend spans all generations, with Gen Z leading at 56% (up 11 points annually). Yet macroeconomic instability clouds future expectations, as 52% anticipate stagnant or declining income over the coming year.

Generational divides emerged starkly: while 60% of Gen Z expects income growth, older cohorts express greater caution. Top financial concerns include persistent global tariff wars, everyday inflation (57%), and employment prospects (54%) – worries amplified by Hong Kong's rising inflation and unemployment since February.

Financial pressures triggered behavioral shifts: 39% reduced non-essential expenses like dining out and travel. Simultaneously, 39% bolstered emergency funds, 25% increased retirement savings, and 20% accelerated debt repayment, reflecting balanced fiscal prudence.

Amid challenges, positive signals emerge: revitalized property transactions, stock market growth fueled by resurgent IPO activity, and expectations of sustained low local interest rates alongside anticipated U.S. rate cuts in late 2025.

"Hong Kong consumers demonstrate pragmatic resilience," observed Sun Weihan, TransUnion’s APAC Chief Advisor for Research and Consulting. "Their dual focus on immediate spending control and strategic measures like emergency funding and debt reduction prepares them for uncertainties." This underscores the critical need for personalized financial solutions across generations to navigate volatile economic landscapes.