PwC Consumer Sentiment Survey - Spring 2026

Sudden sentiment setback

Sentiment among UK consumers has tumbled to its lowest level since the nation was in a recession in September 2023. Dropping from –1 to –13, it is also the sharpest quarterly decline in sentiment since the onset of the Ukraine war four years ago. The decline reverses the cautious improvements in consumer sentiment seen over the last year and returns sentiment to its longer-term average of around –10 to –15.

Our Index, based on a survey of more than 2,000 UK adults conducted after the Easter Bank Holiday in April, shows consumer sentiment has fallen across all age groups. Older groups, along with those less affluent, seem to be better insulated against recent events, perhaps due to April’s benefit rises and triple-lock pension uprating.

However, all groups remain concerned and the speed of the decline in sentiment across the board signals sentiment is likely to weaken further as the full impact of higher food and energy costs is realised. In contrast to previous cost of living shocks, the gap between more and less affluent households has narrowed, while the gap between the young and old has widened.

PwC Consumer Sentiment Index 2008-2026

“Thinking about your disposable income in the next 12 months, do you think your household will be...?”

Widespread cost of living concerns

Rising costs loom large for every age group, with nine of out 10 consumers naming cost of living as their biggest concern. Our research has found that for almost three quarters of consumers these concerns will have a direct impact on their spending or saving plans for the year ahead.

Every age group feels less financially “healthy” than in the previous quarter, revealing they don’t have any money left for luxuries or savings once they’ve paid for basics. Concerns around the cost of everyday things have risen across the board – these concerns were climbing in the previous quarter but have heightened in the wake of the Middle East conflict.

Younger people have seen the sharpest deterioration in perception of household finances, alongside rising anxiety around job security and housing costs. Among 25-34-year-olds there is a marked movement away from a post-election bounce of feeling financially “healthy” towards “struggling” or “in trouble”. The number of those who consider their finances “healthy” has almost halved in this age bracket - and there’s been an 8% increase in those “struggling” or “in trouble”.

Meanwhile, job security or prospects are a concern for more than 60% of under-45s and for 50% of skilled manual workers. Elsewhere, mortgage repayments or rent increases are a pressing concern for two-thirds of 25–44-year-olds.

With pay rises and benefit increases usually given in April, most people won’t be expecting any further increases in their income for the rest of the year. It follows then, that spending patterns are already shifting towards budgeting behaviours in anticipation of rising prices.

Concerns about personal and national issues

Looking ahead at the next 12 months, how concerned, if at all, are you about each of the following things?

Shift in short-term spending

Rising concerns around household finances has prompted a notable uptick in the number of people planning to cut back or change their spending habits. Eight out of 10 are planning short-term cutbacks, up from seven out of 10 in the previous quarter – a figure which had remained broadly unchanged since the start of the decade.

As the graphs below show, people plan to rein in short-term spending across every category, with notable increases in the number of consumers prioritising trading down to cheaper brands, going to cheaper stores and driving less, compared with three months ago. Longer term, spending intentions over the next year have also dropped across every category.

There are still pockets of opportunity for businesses, for example older consumers are less willing to cut back on groceries, and younger people are less willing to curb fashion, health, and beauty spending over other outgoings. The World Cup could also bring a welcome boost to pubs and retailers this summer – while some pent-up demand in holiday bookings may be released as England and Scotland’s fates are determined.

Spending cutbacks intention by category

Over the next three months, do you expect to cut back your spending in any of the following ways?

Net spending intention

How do you expect your spending to change on the following categories over the next 12 months?

^{Note: Net spending intention is defined as the proportion of consumers who expect to spend more minus the proportion who expect to spend less}

Looking ahead

Retailers, leisure operators, and hospitality groups are acutely aware of weakening consumer demand, and wary of the pressure it will add to unexpected energy and input cost headwinds. We believe the sector is right to prepare itself and should expect consumer sentiment to worsen before it improves.

Food prices, which are already on the rise, typically have the biggest influence on cost of living perceptions, and are expected to climb further. The energy price cap is also due to rise in July, and higher bills will bite more in the autumn when usage rises. Our Index confirms consumers are tightening their purse strings and intend to curb spending further – with plans to cut back or trade down as prices rise.

Taking action

Businesses should look carefully and quickly at shifting consumer behaviour and act now to protect key trading seasons ahead. Acknowledging your customers are under strain will help retain them in coming months and protect your business for tougher times ahead.

You can adapt quickly by returning to the lessons learned and actions taken in recent years – ensuring you scenario plan for higher food and energy costs and for Christmas now, monitoring demand closely, and considering any opportunities to transform.

Retailers and grocers should look to appeal to loyal shoppers who are cutting back or trading down, to discourage them from switching retailers. They need to offer ranges at different price points to help shoppers economise, while retaining premium own label ranges to allow shoppers affordable treats. They can also use personalisation and targeted promotions to make shoppers feel special and to reward loyalty.

Fashion and beauty operators can tap into more resilient demand from younger consumers, making spending feel justified through delivering the right level of newness with good value across all channels. Beyond the younger demographic, all age groups are likely to lean into small indulgences and ‘pick-me-ups' - the lipstick effect 2.0. Meanwhile, the second-hand market is no longer just about circularity but budget enablement, which traditional retailers can lean into through partnerships as well as their own resale platforms.

Hospitality and leisure groups are already taking action to drive footfall, offering value menus and deals, as well as experiences and special events, to retain frequency and pre-empt a trade down to in-home leisure experiences. As consumers feel the pinch further, businesses will need to offer value for money and shout louder to make themselves heard in a competitive market.

Travel and holiday groups are managing fuel-related cost pressures and logistics disruptions to protect the peak summer season, as well as navigating a booking profile driven by consumer caution. To support demand, they can remind people that holidays are non-negotiable and provide wellbeing benefits, with options to suit all demands and wallets. Buy now pay later schemes, flexible terms in case of unexpected events, and offering alternatives such as different destinations or cheaper options can also help overcome barriers to booking.

This research is based on a nationally representative survey of 2,068 adults conducted between 10-13 April 2026.