More than half (52%) of Hong Kong consumers are optimistic about their household finances in the next 12 months – the highest rate in 2024, finds a recent study.

The majority (44%) of consumers anticipate an income rise, most notably among millennials (rising from 40% last year to 51%), with 42% of consumers saying that they expect income stability in the next year, finds the Consumer Pulse Study for Q4 2024, published by US-headquartered credit reporting agency TransUnion

The study also shows that proactive credit monitoring will be crucial for empowering Hong Kong consumers to manage their credit health, as awareness of the importance of credit and improved access to it both grow.

Over one-third (34%) of Hong Kong consumers in Q4 2024 report an increase in household income over the last three months. Notably, Gen Z lead this trend among the four surveyed generations (Gen Z, millennials, Gen X and baby boomers), with nearly half (49%) of them reporting income gains, the highest of any group despite a decrease from last year (57% in Q4 2023).

Millennials show significant improvement with 40% disclosing an income increase, marking the highest percentage since Q4 2023. Building on the positive trend of income increases reported last quarter, over half (52%) of the respondents indicate that their income levels remained unchanged in Q4 2024, suggesting a stable income for the majority.

Consumers’ outlook remain upbeat, the study notes, with 86% anticipating their income to increase or to remain stable over the next 12 months. This confidence is particularly pronounced among younger generations, suggesting a positive shift in their financial situations.

Specifically, 51% of millennials expect a boost in their earnings, a significant increase from 40% at the same time last year. Moreover, more than half (53%) of Gen Z expect an income increase as well, although this figure is lower (68% in Q4 2023) year over year.

Riding on these positive trends in income and anticipated future earnings, around 52% of consumers express optimism about their household financial outlook for the upcoming year, up from 46% in Q4 2023.

This shift is likely influenced by the improved performance of the local stock market, heightened economic activities and an interest rate cut by the Hong Kong Monetary Authority in September 2024, which may have helped ease financial burdens.

Additionally, this positivity could also be attributed to consumers’ enhanced capabilities in managing current financial obligations, as 80% of consumers expect to be able to pay their current bills and loans in full, an improvement from the 74% who said the same last year.