Consumer confidence in the United Kingdom has improved for the third consecutive month, with the latest data showing a modest rise in household sentiment and spending outlook.
The British Retail Consortium’s (BRC) February report reveals that confidence levels are now at their highest point since mid-2025, even as broader economic concerns linger.
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Consumer confidence rises modestly
According to the BRC-Opinium consumer confidence survey conducted between 10–13 February, UK consumer confidence improved across key measures compared with January.
The index of general economic expectations rose, personal financial confidence increased, and intentions to spend on retail goods moved into neutral territory. Personal saving intentions fell slightly, reflecting a small shift back towards spending.
Helen Dickinson, chief executive of the British Retail Consortium, said the latest figures mark the third straight monthly improvement and place confidence at its highest since June last year. She noted that young people, in particular, remain more upbeat about the months ahead.
Despite these gains, the overall measure of consumer confidence remains below long-term historical averages and retail demand is still weak compared with past periods, underscoring the gradual nature of the recovery.
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By GlobalDataRetail outlook and consumer spending
Retailers have seen cautious signs of renewed activity, but spending patterns remain mixed. The shift from negative to neutral on intended retail spend suggests consumers are tentatively prepared to buy more goods, after months of subdued demand.
Industry analysts point to recent UK retail sales data showing stronger volume growth in January 2026, with some sectors reporting marked increases year-on-year. This aligns with wider business indicators that suggest a slow but steady pickup in spending.
However, consumers continue to weigh their household budgets carefully. Broader surveys outside the BRC data indicate that many households remain worried about debt, disposable income, and the overall economic outlook — factors that could temper retail spending growth in the near term.
Economic headwinds still weigh
Despite the steady rise in consumer confidence, structural economic challenges persist. Slow GDP growth and rising unemployment are cited by business groups as obstacles to a stronger rebound in sentiment and spending.
The Bank of England’s updated forecasts for 2026 show modest growth expectations, and economists note that sustained improvements in confidence and consumer spending will be linked to broader economic performance.
Dickinson emphasised that while the increase in confidence is encouraging, it remains fragile. She highlighted the need for policymakers to address economic pressures that affect household finances and retail costs if the recovery in consumer mood and retail spend is to broaden and deepen.
