A minority of Hongkongers are optimistic about their household finances this year. A survey by TransUnion showed that only about 36% of respondents are optimistic about their household finances improving in Q4, the first rise since last year. But over 70% of citizens may cut spending to prepare for inflation and possible recession. Around 34% surveyed expected the city's economy to fall into recession this year - an increase of 10 percentage points from the previous quarter. To deal with a potential economic slowdown, 73% of consumers plan to cut back on spending while 63% said they would increase their savings. Consumer appetite for credit continues to decline due to macroeconomic uncertainty and interest rate hikes, with 31% of respondents indicating that they intend to apply for new credit, down from 48% in early 2022.