Published by Global Banking & Finance Review®
Posted on March 25, 2026
2 min readLast updated: March 25, 2026
Add as preferred source on GoogleA KPMG UK Consumer Pulse survey (March 5–16, 2026) shows consumer sentiment weakened versus Q4 2025, as concerns about food and energy prices tied to the Iran conflict drive spending cuts and deferrals.
(Corrects to remove extraneous word from headline)
LONDON, March 25 (Reuters) - British consumer sentiment this month was slightly weaker than three months earlier, pushed down by worries about grocery and energy costs linked to the conflict in the Middle East, according to a quarterly survey from accountants KPMG.
Half of people who thought the economy was worsening had cut spending as a consequence, and 40% of them were deferring major purchases, up from 34% three months ago.
"Considering the backdrop of the ongoing conflict in the Middle East, and the actual and potential impact on energy and grocery prices, it is not a surprise that we are seeing heightened consumer concern about the economic health of the UK," said Linda Ellett, head of consumer, retail and leisure for KPMG UK.
Following are further key points from the release:
(Reporting by David Milliken Editing by William Schomberg)
UK consumer sentiment dropped due to concerns over rising grocery and energy costs linked to the conflict in the Middle East.
62% of Britons thought the economy was weakening in March 2025, up from 58% in the previous quarter.
Half of those worried about the economy have cut spending and 40% are deferring major purchases.
Consumers are mainly concerned about the cost of groceries, utility bills, and eating or drinking out.
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