Consumer confidence in UK economy plunges, says Which?
Consumer confidence in the UK economy has dropped sharply over the past year, according to new data from Which?.
The consumer champion’s Consumer Insight Tracker shows confidence in the future economy fell by 31 points, from an average of -9 between May and July 2024 to -40 in the same period this year.
Between May and July 2025, 56 per cent of people thought the economy would get worse, compared with just 16 per cent who believed it would improve. Which? said this marked one of the lowest levels of confidence since early 2023, when inflation and the cost of living crisis dominated.
Confidence in the economy declined sharply last autumn and remained low through spring 2025, influenced in part by global events including US tariff policies. Although it has recovered slightly in recent months, it remains well below last year’s levels.
Pensioners were the most pessimistic group, with confidence in the economy falling from an average of -5 in mid-2024 to -63 a year later. Which? said the drop coincided with the government’s decision to scrap most winter fuel payments, which hit sentiment among older people despite a later U-turn.
The tracker also highlights the continued strain on household finances. In the month to 18 July 2025, an estimated 2.1 million households missed at least one essential payment such as rent, mortgage, utility bills or loan repayments. Around 13.9 million households, nearly half of the UK, reported making adjustments to cover costs, including cutting back on essentials, dipping into savings, selling possessions or borrowing.
Which? has urged the government to ensure consumer protections are central to its economic growth plans.
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.”
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