Consumer confidence hits decade-long low

Consumer confidence has now been negative for ten consecutive years, with the GfK index falling sharply again in January. Analysts describe a mood of resignation rather than panic, as inflation continues to outpace wage growth and households remain cautious. The prolonged pessimism is dampening entrepreneurial risk-taking and discretionary spending.

The Consumer Confidence Index was up one point to -16 in January. Three measures were up, and two were down, compared to last month’s announcement

Neil Bellamy, Consumer Insights Director at GfK, an NIQ Company, said“January 2026 brings an unwanted anniversary, marking 10 years since consumer confidence was last in positive territory. Even with a one-point increase in headline confidence this month to -16, we remain a long way from consumers feeling that better days are around the corner. Yes, perceptions of personal finances have improved, but this is offset by growing concerns about the economy. We’ve seen this pattern before. During periods of political and economic uncertainty – most notably in late 2022 – consumers became more cautious but also more self-reliant. What we’re witnessing now is a return to that mindset, people feel they can manage their own finances, but they remain unconvinced about the wider economic outlook. Let’s be clear – this isn’t optimism; it’s resilience.”

“Consumers are once again focusing on what they can control – their own spending and saving – while confidence in the wider economy remains low. To many consumers, the UK economy is beginning to resemble an untethered boat drifting slowly out to sea.”