UK Consumer Confidence Sees Sharpest Decline in Nearly Three Years, Deloitte Reports
British consumer sentiment dropped significantly last month for the first time in almost three years, according to a Deloitte survey released Monday. The decline reflects growing concerns over job security and income prospects.
Deloitte’s consumer confidence index fell by 2.6 percentage points in the second quarter to 10.4%, marking its lowest level since early 2024. This is the first meaningful drop since Q3 2022, a period marked by soaring inflation and market instability triggered by former Prime Minister Liz Truss’s budget. Deloitte dismissed a minor dip last year as statistically insignificant.
“Fears about a weakening job market have left people anxious about employment and future income,” said Celine Fenech, Deloitte’s consumer insight lead. “High living costs and persistent inflation are also fueling concerns over personal debt.”
Businesses have cited higher employment taxes, April’s rise in the minimum wage, and upcoming changes making it harder to fire new hires as reasons for pulling back on recruitment.
Official figures last week showed the UK unemployment rate rose to 4.7% for the March–May period, the highest since 2021. Meanwhile, inflation climbed to 3.6% in June, the highest since January this year.
Deloitte’s findings contrast with those from GfK’s long-standing consumer sentiment survey, which rose last month to its highest point since December, despite showing weakness in late 2023.
The Deloitte survey, conducted between June 13–16 with 3,200 participants, assessed consumer confidence based on views about job security, employment prospects, income, debt, child welfare, and general wellbeing. While perceptions of the broader economy improved by 3.9 percentage points, they remained nearly 20 points lower than a year ago.
“While economic activity has slowed, the rise in business confidence from our latest CFO survey highlights resilience despite global uncertainties,” said Ian Stewart, Deloitte’s chief economist.
