Consumer confidence sees biggest quarterly fall since summer 2022

April delivered an index score of -13, a 12-point fall from the last survey at the start of the year and reversing a modest upward trend that started at the beginning of 2025. 

Sentiment is trending downwards among all age groups, but young people are proving more resilient in their optimism than older Brits, with PwC reporting a “big gap”.

That being said, it is people under 35 who have been hardest hit by a deterioration in how the public views their personal finances.

There was a 20% drop in those feeling financially healthy in that age bracket and a 9% increase in those struggling or in trouble, such as by missing bills or loan payments. Among all age groups, there was a 7% fall in those reporting healthy finances and a 4% increase in the share of adults saying they are struggling. 

Worryingly for retailers, eight out of 10 consumers plan to make spending cutbacks in the next three months. Two-fifths said they would buy less, while 37% said they would eat out less or trade down to cheaper brands. 

Nine out of 10 consumers now say they are concerned about the cost of living, while nearly as many say they are worried about the UK economy. 

PwC UK head of retail Jacqueline Windsor: “The fall in consumer sentiment this quarter will give retailers pause for thought. While the first quarter and first half of the year tend to be the low season for many, the prospect of a golden quarter with higher inflation will feel like the eye of the storm.

“Retailers will need to continue to position on value – ensuring they have a range of products for those who plan to trade down as well as cater for those who are going to protect their spending in areas like fashion, health and beauty.”