U.S. consumers are entering the second half of 2026 cautiously optimistic about their financial futures, even as rising gas prices, slowing income growth, and persistent inflation continued to squeeze household budgets, according to TransUnion’s Q2 2026 Consumer Pulse study.
Overall financial optimism held flat at 55%, unchanged from a year ago, while pessimism dropped to 23% from an all-time high of 27% in Q2 2025. The findings are based on a survey of nearly 3,000 U.S. adults conducted in late April and early May 2026.
Inflation remained the top household financial concern, with more than eight in 10 consumers ranking it among their top three worries, up two percentage points from a year ago. The sharpest movement came from gas prices: 71% of consumers said they were very concerned about rising gas prices, a 43% increase year over year and a 90% jump from Q1 2026.
Recession fears ranked second at 51%, followed by interest rates and housing costs, each cited by 42% of respondents.
Across all 13 spending categories measured in the survey, Gen X reported the highest levels of unaffordability of any generation. The so-called sandwich generation, adults simultaneously supporting children and aging parents, is feeling that pressure acutely. Just 63% of Gen X consumers said their household finances were on track or better than planned, compared to 74% for Gen Z and 71% for Millennials.
Younger generations remained the most financially optimistic. Gen Z led all groups at 68% optimistic, followed by Millennials at 63%, while Baby Boomers remained the most pessimistic generation at 44%, though their pessimism fell sharply from 36% a year ago.
The share of consumers reporting income growth fell three percentage points to 27%, while those reporting flat income rose four points to 57%. The decline was steepest among high-income households, where only 32% said their income increased, down 10 percentage points from Q2 2025.
Fewer consumers plan to apply for new or refinance existing credit compared to a year ago, with intent dropping to 28% from 33% in Q2 2025. The pullback was most pronounced among younger consumers, though Gen Z and Millennials still reported the highest absolute levels of credit intent at 45% each.
