Finance
UK Consumer Sentiment Slides to Weakest in Over Two Years, Brc Survey Shows
Published by Global Banking & Finance Review®
Posted on March 26, 2026
2 min readLast updated: March 26, 2026
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UK consumer sentiment plunged in March to its weakest since the BRC‑Opinium survey launched in March 2024, as households grew more pessimistic about their finances (–17 from –6) and the economic outlook (–53 from –30), amid inflation fears tied to Middle East unrest.
UK Consumer Sentiment Drops to Lowest Level in Over Two Years, Says BRC
British Retail Consortium Survey Reveals Declining Consumer Confidence
LONDON, March 26 (Reuters) - British households' expectations for their own finances and the state of the economy have fallen to their weakest in at least two years as the Middle East conflict raised the prospect of higher inflation, according to a survey on Thursday.
The British Retail Consortium said households' view of the likely state of the economy over the next three months sank to -53 in March from -30 in February, while their assessment of the prospects for their own finances dropped to -17 from -6, with both measures the lowest since the survey began in March 2024.
Impact of Middle East Conflict on Consumer Sentiment
"Consumer confidence collapsed as the Middle East conflict raised the prospect of higher inflation in the months ahead," BRC Chief Executive Helen Dickinson said. "The drop in confidence was most pronounced among the Boomer generation, who are most reliant on investment and pension funds."
Key Highlights from the BRC Release
Spending Expectations
Spending expectations rose as shoppers expected to see rising energy costs reflected across the economyFood and Groceries Spending
Food and groceries was the main category of retail and leisure spending where households expect to spend more over the next three monthsSurvey Methodology
Data is based on a sample of 2,000 adults by polling company Opinium, collected from March 10-13Inflation Forecast
The Bank of England this month forecast inflation would rise to 3.0-3.5% over the next couple of quartersRetail Sales Data
The Confederation of British Industry said retailers reported the sharpest annual fall in sales since April 2020 this month
(Reporting by David Milliken; editing by Suban Abdulla)
Key Takeaways
- •Households’ economic outlook score tumbled to –53 in March, down from –30 in February, the lowest since the survey’s March 2024 inception (BRC‑Opinium) (brc.org.uk).
- •Personal finance expectations also slumped sharply to –17 from –6, marking the weakest reading in the history of this quarterly gauge (brc.org.uk).
- •The slide in sentiment was driven by soaring energy concerns amid the Middle East conflict—raising inflation worries—and comes as UK inflation eased to 3.0% in January, while the BoE predicts inflation could still reach 3.5% in coming months if energy prices remain high (moneyweek.com).
References
Frequently Asked Questions about UK consumer sentiment slides to weakest in over two years, BRC survey shows
1What caused the decline in UK consumer sentiment in March 2024?
Consumer sentiment declined due to concerns about higher inflation driven by the Middle East conflict, as reported in the BRC survey.
2How far did consumer sentiment and financial outlook fall according to the BRC survey?
The economy outlook index dropped to -53 in March from -30 in February, while personal finance sentiment fell to -17 from -6.
3Which age group saw the steepest drop in consumer confidence?
The steepest drop occurred among the Boomer generation, who are more reliant on investment and pension funds.
4What are UK households expecting in terms of spending?
Households expect higher spending, particularly on food and groceries, due to anticipated rising energy costs.
