Seven in ten UK adults delaying major purchases despite tentative rise in consumer confidence
Only one in five report improving finances as The Harris Poll UK, a Stagwell company warns that energy costs and political uncertainty could test household resilience
Consumer economic confidence may be edging upwards, but UK households remain reluctant to open their wallets, according to the latest Cost-of-Living Outlook from The Harris Poll UK.
The Q3 2026 research reveals that only one in five UK adults (19.9%) feel their personal finances are improving, while 70% are continuing to hold off major purchases such as cars and holidays.
The findings point to a clear gap between sentiment and action. Although economic confidence has improved slightly following three quarters of decline, there are still more people (59%) saying the ‘Economy is on the wrong track’, compared to 41% saying ‘it is ‘Moving in the right direction’ meaning this optimism has yet to translate into stronger consumer spending.
Day-to-day retail intentions remain broadly flat, while spending on discretionary and big-ticket items continues to be subdued. This suggests household spending is unlikely to provide a significant boost to UK economic growth during the second half of 2026.
UK consumers remain resilient, but cautious
The UK economy has so far absorbed the initial disruption caused by conflict in the Middle East without experiencing an immediate collapse in confidence or a fresh surge in energy-led inflation.
However, The Harris Poll UK warns that the full effect of higher fuel and energy costs may not yet have reached households.
As these costs feed through transport, commodity, supply chain and retail channels during the second half of the year, they could create renewed inflationary pressures and weaken the tentative improvement in consumer sentiment.
The tracker also shows that rising prices continue to have a significant effect on household finances. The majority of respondents say their finances have been either slightly or extremely affected by price increases, while only a small minority report no impact.
Steve Brockway, Chief Research Officer at The Harris Poll UK, said: “The UK economy and consumer sentiment has shown considerable resilience to global shocks, but that should not be mistaken for a return to confident spending.
People may feel marginally more optimistic about the economy and their own finances, but most are still behaving cautiously. With only one in five reporting an improvement in their financial position and seven in ten continuing to delay major purchases, the sentiment-action gap remains substantial.
The next few months will be critical. If higher energy and fuel costs begin feeding more widely into household bills and retail prices, the modest improvement in confidence could quickly be reversed.”
Political transition creates both risk and opportunity
The prospect of a change in prime minister introduces another source of uncertainty for consumers, businesses and financial markets.
Andy Burnham is widely expected to succeed outgoing Prime Minister Keir Starmer, placing greater focus on what his government’s early economic policies could mean for taxation, public investment, household support and the wider cost of living.
Clear and credible policy signals could help turn tentative optimism into greater economic momentum. However, mixed messages or a lack of clarity could encourage households and businesses to remain in a cautious “wait and see” position.
Value will remain critical for businesses
For businesses, the Q3 outlook suggests that any recovery in consumer demand is likely to be slow and uneven.
Brands and retailers will need to offer clear value across price, quality, service and customer experience to persuade cautious consumers to move from intention to purchase.
The Harris Poll UK will continue to track consumer confidence, household finances and spending intentions as the effects of energy prices, inflation and political change develop throughout the remainder of 2026.
ENDS
The full Q3 2026 Cost-of-Living Outlook is available here: https://www.theharrispoll.co.uk/insights/blog/resilient-for-now-the-uk-withstands-early-middle-east-shocks-but-fragility-and-risks-remain
For press information please contact [email protected] or 0330 353 0300.
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.
