With 2024 very likely to be an election year in the UK, the government would like Britons to feel more confident in the future. However, UK consumers continue to demonstrate a negative outlook on the economy and spending. The aspect expected to fare the worst in the next six months is observed to be the cost of living.

While most consumers maintain a pessimistic view of the economy, there has been a modest increase in optimism since October 2023. With inflation falling to a 2-year low, an improvement is seen on the perceptions associated with cost of borrowing. In other areas like disposable income, fewer consumers are starting to believe things will fare worse.

Consumers anticipate that their spending on essentials will remain largely unchanged, on par with October 2023 results. In fact, most UK adults are not anticipating as significant a rise in their expenses as previously expected late last year.

Gen Z are feeling more positive than other demographics, following the fall of inflation. Gen Z consumer outlook favours improvements towards the UK Economy, Global Economy and disposable income.

UK Consumer Mood Monitor – April 2024