UK confidence slides for third consecutive quarter as cost-of-living pressures intensify, new data reveals
New research from The Harris Poll UK, a Stagwell company, shows that economic confidence has declined for the third consecutive quarter, as rising energy costs and worsening household finances continue to weigh on consumers.
The findings come from The Harris Poll UK’s quarterly Cost-of-Living Tracker, an ongoing study monitoring how UK attitudes and behaviours shift in response to economic pressures.
The latest Q2 2026 data highlights growing concern among UK households, with more people reporting that their personal finances have deteriorated and fewer willing to spend on discretionary activities such as dining out, travel, or major purchases.
Key findings:
Confidence in the UK economy is falling for the third quarter in a row, with more consumers believing the country is on the “wrong track”
Household finances are worsening, with increasing numbers saying rising prices are having a significant negative impact on their budgets
Spending intentions are declining, with consumers less likely to eat out, travel, or make big-ticket purchases in the near future
Energy and fuel price concerns are surging, with perceptions of rising costs accelerating at their fastest rate since the pandemic
A fragile outlook for UK growth
The data suggests that weakening confidence is already translating into more cautious consumer behaviour, which could restrict GDP growth and further weaken the UK economy.
At the same time, a sustained squeeze on disposable incomes is increasing financial vulnerability, particularly among lower-income households, raising the stakes for policymakers.
Risk of a second inflation wave
The research also points to a renewed inflationary threat driven by rising energy and fuel costs. As these increases feed through into transport, food production, and other essential goods, they could trigger a second wave of inflation later in 2026.
This presents a difficult balancing act for the Bank of England, as policymakers weigh the need to control inflation against supporting economic growth.
Consumers cutting back across the board
Faced with continued pressure, UK households are actively changing their behaviour to save money. Many are choosing to eat at home rather than dine out, reduce energy usage, and delay major purchases such as holidays or cars.
Sarah Beams, Managing Director at The Harris Poll UK, said:
“We’re seeing clear signs that the UK’s cost-of-living crisis is far from over, it’s evolving.
Confidence has now fallen for three consecutive quarters, and that’s translating directly into more cautious consumer behaviour. People are pulling back on spending, holding off on big purchases and prioritising essentials.
What’s particularly concerning is the renewed rise in energy and fuel costs. If this continues, there’s a real risk of a second inflationary wave later this year, which would put even more pressure on already stretched households.
Because we track this data quarterly, we can see that these behaviours are not easing, they’re becoming the norm as confidence continues to decline.”
ENDS
For press enquiries, please contact ukmarketing@harrispoll.com.
For further analysis of the latest data, read the article here: https://www.theharrispoll.co.uk/insights/blog/from-domestic-pressure-to-global-shock-how-the-cost-of-living-crisis-is-evolving
Notes to editors:
Research conducted among 1,000 nationally representative UK consumers via an online panel
The Harris Poll UK’s Cost-of-Living Tracker is updated quarterly to track changes in consumer sentiment and behaviour over time
About The Harris Poll UK: The Harris Poll UK, a Stagwell company, is a leading market research and strategy consultancy helping the most recognisable organisations understand what matters most to their customers. Combining advanced digital research, behavioural science and proprietary real-time technology, we deliver insight at scale, analysing over one million surveys and 40,000 emotion data points each month.
From bespoke consultancy to continuous brand measurement, we help organisations understand how their brand is performing, where it stands against competitors and where it needs to go next in a fast-moving consumer landscape. By uncovering emotional drivers, unmet needs and emerging consumer trends, we support confident decision-making and help turn insight into meaningful competitive advantage.