Finance
UK Consumers Turn Gloomiest About Economy Since Records Began in 1978
Published by Global Banking & Finance Review®
Posted on April 22, 2026
2 min readLast updated: April 22, 2026
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British consumer pessimism hits unprecedented depths: the Ipsos Economic Optimism Index plunged to –72 in April 2026, the lowest since tracking began in 1978, as the Iran war, energy shocks, and inflation dampen confidence—even more than during the 2008 crisis.
UK Consumer Economic Sentiment Falls to Record Low, Survey Finds
Record Low Economic Optimism Amid Global and Domestic Challenges
Survey Results Highlight Consumer Gloom
April 22 (Reuters) - British consumers are gloomier about the economy than at any time since records began in 1978, according to a survey published on Wednesday that showed the Iran war and soaring oil prices are taking a heavy toll on British households.
The Economic Optimism Index of market research firm Ipsos, measuring the gap between those who are optimistic about the economy and those who are pessimistic, fell to a record low of -72 this month.
That was below a previous low of -68 a year ago when U.S. President Donald Trump imposed trade tariffs on imports from the rest of the world.
Comparison with Previous Economic Downturns
Economic sentiment is now worse than during the global financial crisis of 2008 and the 1980 recession that saw unemployment spiral - a bad sign for Prime Minister Keir Starmer's government before local elections next month.
Factors Contributing to Negative Sentiment
Impact of Recent Global Events
Consumers have been hit by successive shocks from the COVID-19 pandemic to Brexit, soaring inflation and now the Middle East conflict.
Energy Prices and Economic Vulnerability
Investors view Britain's economy as highly vulnerable to the jump in energy prices caused by the Iran war, although official data show the economy grew strongly in the months immediately before the conflict.
Other Surveys and Political Implications
Supporting Data from Additional Reports
The Ipsos survey echoed a Citi/YouGov report published last month which showed a record jump in inflation expectations for the year ahead.
Potential Impact on Upcoming Elections
"Concern about the state of the economy is widespread among all groups," Gideon Skinner, senior director of UK politics at Ipsos, said, adding that this could play a "key role" at the May 7 elections that are likely to heap more pressure on Starmer.
Public Expectations and Survey Methodology
Only 6% of Britons surveyed by Ipsos thought the economy was likely to improve over the next 12 months.
Its survey of 1,003 adults was conducted between April 8-14.
(Reporting by Andy BruceEditing by William Schomberg)
Key Takeaways
- •The Ipsos Economic Optimism Index slumped to –72 in April, a new record low and deeper pessimism than during major past crises such as the 2008 global financial crash and 1980 recession (moneyweek.com)
- •UK GDP had been growing strongly—0.5% in the three months to February 2026—before the Iran war disrupted the economy and led the IMF to downgrade growth forecasts to just 0.8% for 2026 (moneyweek.com)
- •Consumer inflation expectations are rising sharply amid energy price surges, echoing Citi/YouGov findings of record inflation fears, compounding the pessimism reflected in widespread gloom across demographics (uk.finance.yahoo.com)
References
Frequently Asked Questions about UK consumers turn gloomiest about economy since records began in 1978
1What does the latest Ipsos survey reveal about UK consumer sentiment?
The Ipsos survey shows UK consumer economic sentiment is at its lowest since records began in 1978, with the Economic Optimism Index dropping to -72.
2How have recent global events affected UK consumers?
Events such as the Iran war and soaring oil prices have heavily impacted UK households, worsening their outlook on the economy.
3What was the previous record low for UK consumer optimism?
The previous record low was -68, recorded a year ago when trade tariffs were imposed by the US president.
4How does current UK economic sentiment compare to past crises?
Current sentiment is worse than during the global financial crisis of 2008 and the 1980 recession.
5What percentage of Britons expect the economy to improve in the next year?
Only 6% of Britons surveyed thought the economy would improve over the next 12 months.
