UK consumer confidence about the economy fell again in the last quarter, according to a KPMG Consumer Pulse survey of 3,000 UK consumers. The share who said the economy was worsening rose to 62% in the most recent quarter, up from 51% in the previous three months and from 43% since the start of 2025.

The majority, 58%, said they were financially secure, unchanged from the previous quarter. This perception of a worsening economy is prompting households to cut or defer spending. Among those who agreed the economy was worsening, 56% said they were cutting spending on everyday items, up from 51% last quarter. The cost of groceries was cited by 81% as a reason for the perceived decline, up from 79%, followed by utilities at 77% (up from 74%).

Linda Ellett, head of consumer, retail and leisure at KPMG UK, said: “Rising food inflation and higher energy bills this autumn are two likely factors in the increase in consumer pessimism about the UK economy over the last quarter.” She added that, although most households feel able to manage their budgets, concerns about a weaker economy are prompting changes in spending. With the Budget approaching, the government should reassure households that the economy is headed in the right direction. The survey also notes continued reductions in spending on eating out and takeaways, at 40% and 34% respectively, as consumers adapt to higher costs by switching products and using loyalty schemes.