Inflation concerns dampen consumer confidence in September
By Benjamin Chiou
Date: Thursday 18 Sep 2025
(Sharecast News) - Consumer perceptions about the state of the economy worsened in September, according to a confidence survey out on Thursday, as high inflation continued to weigh on sentiment.
The British Retail Consortium's consumer sentiment monitor showed that 52% of the public expected UK economic conditions to worsen in the coming three months, up from 49% in August.
Some 16% predicted an improvement, while 29% expected no change, resulting in a net balance of -36% for September, down from -32% the month before and the worst balance in four months.
The personal financial situation balance remained weak at -7% (down one percentage point), while personal spending levels were subdued at +14% (-2pp). The personal saving measure also declined to zero, down 2pp over the month.
Inflation was said to be one of the biggest worries for consumers, the BRC said, with food inflation expected to hit 6% by the year-end, as people look ahead to the Autumn Budget on 26 November for hopes of measures to ease the strain.
"Confidence among Millennials fell dramatically this month, as their expectations for both the economy and their own finances fell by double digits. The same generation also cut spending expectations for the months ahead, though this was largely offset by improvements for Gen Z, who remain the most optimistic," said the BRC's chief executive Helen Dickinson.
"Worries about the Budget, combined with the increase in the cost of living, have eroded confidence, with little sign that inflation will come down soon."
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN