Huanlian Survey: Only 29% of surveyed Hong Kong consumers reported an increase in household income in the past 3 months, a year-on-year decrease of 13 percentage points
Hong Kong consumer household income has dropped by 13 percentage points, but when facing economic uncertainty, they will be more cautious in managing their personal finances. A survey shows that 44% of consumers are optimistic about their family's financial situation in the next 12 months, but 20% of respondents expect to be unable to pay all bills and loans. Consumers are concerned about inflation of daily necessities, economic recession, and job opportunities. In the next 3 months, 41% of consumers plan to cut major expenses, and 37% will reduce non-essential spending. In terms of credit, 30% of consumers plan to apply for new credit or refinance. Generation Z faces challenges in debt management and needs to improve financial literacy
According to the latest information from the Wise Finance APP, on June 26th, the credit data service agency CreditPulse released the second quarter Consumer Pulse Survey. The data shows that only 29% of Hong Kong consumers surveyed reported an increase in household income in the past 3 months, a decrease of 13 percentage points compared to the same period last year. While this downward trend may require attention from all sectors, the survey also found that Hong Kong consumers tend to take more proactive measures and manage their personal finances cautiously when faced with uncertain economic prospects.
The survey results indicate that 44% of respondents feel optimistic about their household financial situation in the next 12 months, lower than the 62% reported in the same period last year. Additionally, 20% of respondents expect that they will not be able to fully pay all current bills and loans, an increase of 3 percentage points from the previous year. Among them, young consumers are most affected, with 23% of Generation Z consumers stating that they are unable to fully pay their bills and loans.
Regarding the main concerns affecting the household financial situation in the next 6 months, 60% of consumers expressed concerns about the inflation of daily necessities (such as groceries, fuel, etc.), followed by 57% worrying about a possible economic recession, and 53% fearing the possibility of unemployment.
Looking ahead, 41% of consumers expect to reduce major expenses such as purchasing appliances and cars in the next 3 months. Additionally, 37% stated that they will further reduce non-essential expenses, 36% will avoid online and offline retail consumption. These data all indicate that consumers are adjusting their future spending to cope with the expected economic downturn.
In terms of new credit, 30% of respondents expressed interest in applying for new credit or refinancing existing credit in the next year. Among them, Generation Z consumers (36%) are the most interested, followed by Millennials (35%), Generation X (28%), and Baby Boomers (17%). Among the respondents planning to apply for new credit, 49% intend to apply for a new credit card, 30% plan to apply for personal loans, and 28% plan to increase their existing credit limits.
Sun Weihan, Chief Consultant of CreditPulse Asia Pacific Research and Consulting, stated that the survey data shows a cooling confidence among Hong Kong consumers in the economic outlook. The challenges faced by Generation Z in managing debt also deserve attention from financial institutions, indicating that financial literacy among the younger generation needs to be improved