UK consumer sentiment remains under pressure in July
By Abigail Townsend
Date: Monday 21 Jul 2025
(Sharecast News) - UK consumer sentiment remained subdued in July, a survey showed on Monday, as concerns about household finances continued to weigh heavily.
The S&P Global UK consumer sentiment index came in at 45.1, little changed on June's 45.0 and well below the neutral 50.0 benchmark.
A reading above 50.0 indicates growth while one below it suggests contraction.
Respondents cited concerns about their financial wellbeing and the wider economic climate.
Across the index's subcomponents, the household finances measure was 43.6, spending sentiment was 37.7 and debt was 48.9, all little changed on June.
Only the labour market index was in positive territory, rising to 52.4 from 52.0.
However, looking ahead and consumers were marginally more optimistic. While households still expect their financial situation to deteriorate, the extent to which it was expected to worsen was the least pronounced in seven months.
Maryam Baluch, economist at S&P Global Market Intelligence, said: "July marked another month of pessimism among UK households.
"The labour market offered some reassurance, with job security returning and work activity increasing at a sharper pace. However, the growth rate of income from employment slowed to a four-month low.
"Stark disparities across income brackets were evident: lower-income households experienced a steeper downturn in earnings from employment, while their higher-income counterparts saw a marked increase. Alarmingly, the gap between these groups reached one of the largest levels in the survey history."
Baluch added that external challenges were likely to continue in the coming months, adding to uncertainty, although lower borrowing costs could help.
The Bank of England has cut interest rates twice this year, to 4.25%, and is widely forecast to trim again when it next meets in August.
The CSI, which has run monthly since 2009, is based on responses from a panel of 1,500 households. The latest data were collected between 10 and 14 July.
The survey's findings echoed separate research from Deloitte, also published on Monday, which also showed weak consumer confidence in the UK. Its index dropped by 2.6 percentage points to 10.4% in April through June, the first fall since the third quarter of 2022.
Unlike the CSI, however, respondents cited concerns about a slowing labour market.
The UK's unemployment rate was 4.7% in the three months to May, the highest since 2021.
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