PwC Consumer Sentiment Survey - Autumn 2026

Sentiment improves for all

Consumer sentiment is in positive territory for the first time since the tail end of the Covid pandemic in September 2021 - and back on the improving trend that started at the beginning of 2025. Sentiment is up two points from January to +1, overriding a sharp dip in April - when conflict in the Middle East prompted widespread fears around rising household costs.

Our Index, based on a survey of 2,070 UK adults conducted in the second week of August, shows consumer sentiment has risen across all age groups. Older families, pensioners, and those less well off - the groups most exposed to cost of living pressures - have seen the biggest improvement in their finances. Meanwhile, 35-44-year-olds registered a sentiment score of +21, the highest since our survey began in 2008.

Consumer Sentiment Index 2019– 2026

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

Caution around Christmas cheer

For the first Christmas since the pandemic, the balance has shifted towards more people planning to spend more on Christmas (25%), rather than less (21%). While consumers always spend more than they plan to over the festive season, this is the most optimistic they’ve been since the end of the pandemic. Some 14% of consumers say they had already started Christmas shopping by mid-August and a further 16% plan to shop earlier than they did last year.

Overall, fewer people are planning short-term spending cutbacks in the next three months, than they were in either January or April, as real income growth boosts sentiment and spending intention. Looking further ahead, spending intention for the next 12 months has improved across every category since April, and across most discretionary categories since the start of the year.

Spending intentions on Christmas shopping and celebrations, September 2023 - August 2026

Compared to last year, how do you expect your spending on Christmas shopping and celebrations to change this year?

^{Source: PwC Consumer Sentiment Index}

Despite the cheer, 85% of consumers remain worried about the rising cost of everyday things. Across all ages, concerns around personal and national issues are largely unchanged from January. The only issue to have raised greater concern among the public since the start of the year is the environment and global warming, which is perhaps unsurprising given the recent heatwaves.

The national picture, however, hides some growing concerns among certain demographics. Younger people, for example, are showing signs of increasing financial stress. Our survey shows 61% of 18–24-year-olds are worried about job prospects, up from 54% in January. Similarly, concern among 25-34-year-olds around job security or prospects also rose, from 59% to 63%. Worries for this group around mortgage repayments or rent increases jumped from 52% to 62% during the same period.

Concern about personal and national issues

Proportion of adults concerned about these issues over the next 12 months, January 2026 - August 2026

^{Source: PwC Consumer Sentiment Index}

Taking action

Higher short-term spending intentions reflect consumers’ current upbeat mood, which may not last into the Autumn, let alone Christmas. Past surveys show that despite good intentions, the bulk of Christmas shopping is always done in the last few weeks before Christmas. By that time, expected rises to food and fuel inflation will have fed through to the consumer – and any tax rises mooted in the Autumn budget will be front of minds.

Businesses should prepare for a dampening of sentiment, and act now to:

• Start Christmas early. Some of the UK’s most famed department stores, such as Harrods and John Lewis, have already opened their Christmas shops online or in-store and others are expected to follow suit shortly. John Lewis said its early launch online came as “festive fever hits records highs”, with customer searches for ‘Christmas’ jumping by 33%, week-on-week, immediately after the World Cup final on 19 July. Follow their lead and encourage people to buy their presents early – because you’ll be knocking at a door that’s open, for now.
• Target different demographic groups. Different groups prioritise different things. Even if the overall market is squeezed, there will be pockets of demographics that are still spending – such as:
  • Under-35s: Younger people have positive spending intentions across most spending categories. Fashion and beauty are a particular priority for this age group but for all other age groups the category registers negative spending intentions. It’s also worth noting that the elders of the group, those aged 25-34, take a strong lead over all other age groups with their spending intentions for beauty and personal care.
  • 35-54-year-olds: While this group is typically sensitive to cost of living pressures, they are feeling particularly buoyant at the moment. They’re most likely to spend spare cash on groceries, pets, children, and health and wellbeing. The older tranche of this group, those aged 45-54, are more inclined to splurge on holidays.
  • Over-55s: As with all age groups, older people prioritise grocery shopping – but unlike other groups they are less willing to compromise and trade down. They stick to preferred brands and are more likely to buy premium goods, than be tempted by discounts. Meanwhile, along with 18-24-year-olds, older people consider holidays one of their top priorities – but unlike younger people, they have more money to spend and are less likely to compromise on quality, which is good news for premium leisure and travel groups.
• Turn tactics. Continue to optimise efficiencies to mitigate ongoing cost headwinds and manage the bottom line through this period of heightened consumer sentiment. Look to deliver operational efficiencies and get your back-of-house in order now, ensuring that sustainable cost and cash benefits are realised. Leaders in this space are laying the foundations to use artificial intelligence (AI) for pricing and promotion decisioning, while rewiring back-office activity.
• Brace for the Budget. With the Chancellor’s autumn Budget set for 28 October speculation is mounting around how businesses may be impacted. Our economists maintain that while the Prime Minister may have changed, the fiscal arithmetic has not. The same difficult trade-offs remain - there will be little financial room to manoeuvre. With the business rates revaluation, the introduction of employee rights changes, and increased global geopolitical friction, some UK businesses have experienced rising costs in 2026. Uncertainty is likely to remain in the short-to-medium term. Businesses should think carefully about what interventions may be available and make efforts to smooth relations with realistic requests.