The latest survey from consultants PwC shows another fall in UK consumer sentiment and a new round of belt-tightening by households concerned over the state of the economy, the job market and their finances.

Following on from what the firm calls the ‘vibecession’ shown in its Autumn survey last year, ‘everything has got a little bit worse across the board’ says PwC with all indicators lower for the first time since the 2022 ‘mini-budget’.

Overall consumer confidence has slipped from -8 at the start of 2025 to -12 at the end of March, the lowest level since September 2023, with every demographic and socioeconomic group bar 25-to-34-year-olds showing a decline compared with the same time last year.

‘While we’ve seen some of these trends and indicators before, unlike earlier declines such as in Autumn 2024 this is due to more than just how individuals feel,’ says the survey.

Household finances are worse than last year and there is greater concern over both personal and national economic situations.

‘Since the beginning of 2025, worries over the economy, geopolitics and inflation have increased, even before recent events concerning global trade tariffs: the full impact of this remains to be seen in our next consumer sentiment survey.’

The only category where consumers expect to spend more than they did at the start of the year is grocery shopping, while intentions to spend on eating out, going out and big-ticket items are at rock-bottom.

Nearly nine out of 10 people surveyed were worried about the UK economy, with 56% of under-25s and 62% of 25-to-34-year-olds concerned about the job security or prospects.

Unusually, retirees – historically the most positive in terms of financial situation – are also feeling the squeeze.

PwC acknowledges the survey data will be worrying for retailers and leisure operators but suggests if the mid-term global outlook improves it could foster a new level of optimism, encouraging consumers to spend.

The consumer confidence survey coincides with the first-quarter labour force survey, which shows the UK unemployment rate creeping up to 4.5%, a slowdown in wage inflation and yet another drop in the number of vacancies advertised, all before the impact of US tariffs is factored in. 

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