UK consumer confidence ticks higher but remains 'gloomy', says BRC

17th Dec 2025 08:49

(Sharecast News) - Consumer confidence levels in the UK improved slightly in December but remained in the doldrums, with expected spending across nearly all retail categories in negative territory.

The net balance of the British Retail Consortium's Consumer Sentiment Monitor - the percentage of people expecting the state of the UK economy to get better over the coming three months minus those expecting a deterioration - came in at -38% this month, up from -44% in November.

"With the Budget not as bad as feared for households, confidence saw a slight uptick in December," said Helen Dickinson, chief executive of the BRC.

"Yet the overall picture remains gloomy, with confidence in the economy stuck below -30 for eleven out of last twelve months."

Their personal financial situation improved to -10%. from -16%, while their personal spending assessment rose to +17% from +14%. Meanwhile, their personal savings fell to -9% from -5%, meaning more people are spending than saving.

However, consumer expectations of spending over the coming three months declined in all retail categories except food and groceries, which saw a net balance of +31%.

Fashion and clothing saw the biggest expected decrease, coming in at a net balance of -16%, along with furniture (-16%) and large electronics (-15%).

"Government needs to pull the levers of growth, tearing down red tape and bureaucracy to allow businesses to flourish and create more jobs. From the Employment Rights Bill to rules on less healthy foods, the Government must consider the cumulative impact of its policies on business, ensuring new regulations are workable and do not punish responsible businesses," Dickinson said.