World

UK consumer sentiment experiences biggest quarterly fall since summer 2022

May 15, 2026 United Kingdom

According to PwC’s latest Consumer Sentiment Survey, global geoppolitical events have dented consumer confidence, which has fallen to its lowest level since autumn 2023 and at the fastest quarterly rate since June 2022

The survey, designed to measure consumers’ spending intentions, recorded an index score of -13 in April. This represents a decline from an initial score of -1 at the beginning of this year and marks a reversal of the positive trend observed since the beginning of last year. PwC notes that the findings come at a time when consumers have yet to feel the full impact of the Middle East conflict on the supply chain, for example in terms of energy prices and food.

According to the survey, British consumers are experiencing the sharpest squeeze on household finances since 2022. The proportion reporting healthy finances has fallen by 7% since January, while the proportion struggling to pay bills has risen by 4%. Those under 35 have been hit hardest, with a 20% drop in those feeling financially secure and a 9% rise in financial distress.

Nearly 90% of respondents said they were worried about the cost of living and the state of the UK economy. Concerns over household earnings increased from 58% to 63%, while fears over rising mortgage or rental costs jumped from 36% to 44%.

“Rising costs are prompting shoppers to pull back spend across the board, and it’s expected sentiment will get worse before it gets better, as consumers face higher energy and food costs later in the year”, said Sam Waller, Leader of Industry for Consumer Markets at PwC UK.

The figures show that almost 80% are planning to cut back on spending over the next three months. Around 40% said they intend to buy fewer items, while 37% plan to eat out less frequently or switch to cheaper brands. The proportion of consumers intending to drive less has also doubled since January, rising from 12% to 24%.

In particular, consumers expect grocery spending to remain their top priority over the next 12 months. Pet food and pet care are the only categories where more people plan to increase spending than cut it. By contrast, consumers intend to reduce spending across all other categories. Eating out has seen the sharpest decline in spending intentions, worsening from -23% in January to -32%.

“While the first quarter and first half of the year tend to be the low season for many, the prospect of a Golden Quarter with higher inflation will feel like the eye of the storm”, highlighted Jacqueline Windsor, Head of Retail at PwC UK. Retailers will need to continue to position on value - ensuring they have a range of products for those who plan to trade down as well as cater for those who are going to protect their spending in areas like fashion, health and beauty”.

The findings are based on a nationally representative survey of 2,068 adults, which was conducted between the 10^th and the 13^th of April 2026.

Image Credits: Chris Lawton on Unsplash

United Kingdom Confidence Customer Economy Retail