The latest S&P Global UK Consumer Sentiment Index (CSI) survey shows British households’ views on future finances hit a two-year low in December.
The survey has been collected monthly since 2009 and is based on a panel of 1,500 UK households. The headline index is a combination of gauges tracking household financial well-being, labour market conditions, household spending, savings, and debt.
At 44.7 in December, down from 45.2 in November, the latest CSI signalled that household confidence signalled that household confidence has sunk to the lowest since April and one of the lowest levels seen since early 2024. The latest data were collected between 4th – 8th December and therefore provide an early snapshot of the impact of November’s Autumn Budget on household sentiment and economic activity.
Households have grown increasingly pessimistic regarding their financial prospects for the coming 12 months in December. Expectations of future financial health deteriorated for a third consecutive month to indicate the strongest level of negative sentiment observed since December 2023.
With the exception of London, households across all 12 monitored UK regions and nations anticipate their financial situation to deteriorate in 2026.
Even in London, households were the least optimistic in since late 2023. Additionally, households reported a sharper decline in their current financial well-being in the final month of the year. The strain on current household finances was the most marked since July. Notably, underlying data revealed that households across all income brackets experienced a drop in their financial health during the month, marking the first instance of a broad-based decline since early 2025.
“The first indicator of household confidence since the Autumn Budget makes for disappointing reading. Sentiment towards the financial outlook over the coming 12 months has soured to the gloomiest in two years,” said Maryam Baluch, Economist at S&P Global Market Intelligence.
Current financial conditions facing households also reportedly deteriorated at an increased rate in December, driven by a further marked reduction in cash available to spend and a rising need to take on more debt.
Confidence in the labour market also wavered. Sentiment reached to its lowest point in six months with signs of job security starting to deteriorate.
“Overall, the combination of subdued household confidence and early signs of job insecurity underscores the ongoing challenges facing UK households as they navigate an uncertain economic environment at the turn of the year,” said Baluch.
“Not surprisingly, spending intentions have worsened in this deteriorating financial environment, suggesting consumers are unlikely to provide much of a boost to the economy as we head into 2026.”
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