NEW YORK, June 18 (Reuters) - U.S. consumers are feeling worse about money as tariffs fuel concerns about rising prices, credit reporting agency TransUnion said.

Of almost 3,000 people polled in May, 27% were pessimistic about their household finances over the next 12 months, up from 21% in the fourth quarter, TransUnion data showed.

"The pessimism is up significantly," Charlie Wise, head of global research and consulting at TransUnion, told Reuters in an interview. "There's a very clear correlation between that pessimism and the uncertainty that's come out of the tariffs."

More than half of respondents said they reduced discretionary spending on dining out, travel and entertainment in the last three months, and 23% saying they had boosted emergency savings.

Consumers who were most concerned about tariffs also expressed plans to borrow more, including through credit cards, personal loans and buy now, pay later services, the survey showed.

Inflation was the top concern for 81% of respondents, while the fear of a recession rose to its highest level in two years.

(Reporting by Lananh Nguyen in New York; Editing by Stephen Coates)

((Lananh.Nguyen@thomsonreuters.com; +1 (646) 696 4829;))