Uncertainties leave HK consumers in doubt of future income growth

Over half of Hong Kong consumers showed lower confidence in future income growth due to macroeconomic uncertainties, a survey finds.

Conducted by TransUnion, the study shows that the cautious sentiment of income growth expectations over the next 12 months was prevalent across generations – with the ongoing global tariff war being the major concern.

Except for macroeconomic difficulties, consumers cited the inflation of everyday goods, economic slowdown, and job security as the top three concerns affecting household finances, accounting for 57, 55, and 54 percent respectively.

Meanwhile, more than two-fifths of consumers in Hong Kong said their income increased in the last three months, while Gen Z, aged 18 to 26, leads the way.

Over half of them indicated an income boost, marking an increase of 11 percentage points year-on-year.

Moreover, Gen Z shows more confidence in income-growth expectations, with 60 percent of them believing their income will grow in the year ahead, the study said.

Facing potential financial pressures, 39 percent of Hong Kong consumers said they are reducing discretionary spending such as dining out and traveling.

"It is clear that consumers are adapting to financial uncertainties through prudent strategies such as increased emergency savings and accelerated debt repayment, which are likely to foster greater financial resilience,”said Sun Wei-han, principal of research and consulting for Asia Pacific at TransUnion.

The survey interviewed 968 Hong Kong residents 18-years-old and older between May 5 and 15.

HELEN ZHONG