Consumer Confidence In UK Economy Falls Sharply, Says Which?
- Sarah-Jayne Gratton
- 2 days ago
- 2 min read
Consumer confidence in the UK economy has deteriorated significantly over the past year, according to new figures from Which?.
The consumer champion’s Consumer Insight Tracker found that confidence in the future economy dropped by 31 points, from an average of -9 between May and July 2024 to -40 during the same period this year.
Between May and July 2025, more than half of people (56 per cent) believed the economy would worsen, compared with just 16 per cent who thought it would improve. Which? noted this represents one of the lowest levels of confidence recorded since early 2023, when inflation and the cost of living crisis were at their peak.
The decline began in autumn 2024 and remained subdued through spring 2025, partly shaped by global pressures such as US tariff policies. While there has been a modest recovery in recent months, confidence levels are still far below those seen a year ago.
Pensioners were found to be the most pessimistic group. Their confidence in the economy fell from an average of -5 in mid-2024 to -63 a year later. According to Which?, this sharp decline coincided with the government’s decision to scrap most winter fuel payments, a move that weighed heavily on sentiment among older people despite a subsequent U-turn.
The tracker also highlights the continuing strain on household finances. In the month to 18 July 2025, an estimated 2.1 million households missed at least one essential payment, including rent, mortgages, utilities, or loan repayments. Around 13.9 million households—nearly half of the UK—reported making financial adjustments to get by, such as cutting back on essentials, using savings, selling possessions, or taking on debt.
Which? has called on the government to put consumer protections at the centre of its economic growth strategy.
Rocio Concha, Which? Director of Policy and Advocacy, said: “Our research shows consumer confidence in the future of the UK economy has dropped alarmingly over the last year.
“The government has rightly focused on growing the economy and raising living standards but in doing so, it must not overlook the importance of consumer protections in restoring confidence.
“People are sick to the teeth of having to dodge fraudsters when shopping online, watching out for rogue traders when making home improvements and needing to keep an eye out for dodgy pricing practices which mean that offers aren’t as good as they first appear. The right consumer protections give people the confidence to spend and the government must place these protections at the heart of its plans to grow the economy.”