UK consumer confidence stuck in a rut as food inflation accelerates
By Benjamin Chiou
Date: Thursday 21 Aug 2025
(Sharecast News) - UK consumer confidence improved marginally in August but remains "in the doldrums", according to a survey from the British Retail Consortium on Thursday, with accelerating food inflation continuing to dampen sentiment.
The net balance of consumer expectations for the economy over the coming three months came in at -32%, up from -33% in July, BRC reported.
The increase was down to a small rise in the percentage of consumers expecting the economic situation to improve, from 16% to 17%; though the proportion predicting a deteriorating environment held steady at 49%, while 30% expected no change.
The headline measure has now stayed below the -30% level over six of the past seven months, and has been in negative territory since July 2024.
"While consumer confidence in the economy crept up this month, it remains 24 pts lower than a year ago, with older generations seeing the biggest falls," said Helen Dickinson, chief executive of the BRC.
Dickinson said that, with prices on the rise and food inflation predicted to reach 6% by the end of the year, spending expectations are on the increase - particularly when it comes to groceries.
Small increases were registered in three components of the BRC survey - consumer expectations around their personal financial situation, personal spending on retail and personal savings levels - but expectations of personal spending overall remained unchanged.
"Consumers see rising prices, gap-toothed high streets, and reports of large businesses falling into administration. Much rides on the Chancellor's plans for Retail, Hospitality and Leisure, and only a significant reduction in the business rates burden can bring about the levels of investment needed to reinvigorate Britain's high streets and town centres," she said.
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