Consumer confidence hits record low

Consumer confidence in the UK has reached an all-time low, according to analysis by the British Retail Consortium (BRC) survey conducted by Opinium. The survey, taken from March 10 to March 13, revealed a drop in consumer expectations for the economy to -53, down from -30 the previous month. Personal finance expectations also fell to -17 from -6. Spending predictions increased to +13 as consumers anticipate rising energy costs.

The sharp rise in energy prices caused by the effective closure of the Strait of Hormuz and attacks on infrastructure in the region has led to fears of higher inflation and weaker growth across oil-importing countries.

Helen Dickinson, Chief Executive of the British Retail Consortium, said “The new year brought hints of optimism, with the second consecutive improvement in consumer confidence in the economy and in people’s own finances. This was the highest in five months, though similar to a year earlier. The contrasting sharp fall in spending expectations, both retail and overall, was expected as the festive season came to a close. This was most keenly felt by Millennials and Gen X, the generations most likely to have children living at home.

“January’s renewed optimism is encouraging, but shows just how important it is for Government to build momentum and restore confidence to the levels seen in previous years. With wages still struggling to keep pace with higher costs of living, many people feel as though neither their own finances nor the wider economy is moving forward. And if business costs continue to accelerate through 2026—from rising business rates to new regulatory burdens—then the risk is clear: inflation remains stubbornly high, and consumer confidence could falter once again.”