The topline trends

The slight uptick in scores for Quarter 1 have been shown to be a bit of a false dawn, as consumer confidence has plunged to record lows, reflecting the many financial pressures that people have been under in 2022.

Looking forward, consumers are now beginning to lose their sense of optimism that things will get better, or that what they’ve been experiencing are only short-term effects.

We can’t comment on what combination of Brexit, the war in Ukraine, or lingering impacts of Covid are responsible for the economic problems that customers face, but we can say that the consequences look bleak from a consumer perspective.

The key findings

• The Index for Consumer Sentiment has fallen 14 points to 56.9.

• This is the second biggest fall we’ve seen, second only to the initial impact of the pandemic

• UK consumer sentiment has declined more steeply than comparable measures in the US and EU

• UK and US sentiment is at its lowest point since October 2018

• Customers remain very concerned about their own financial position

• Consumers are more worried than ever about the economy

• Important differences in consumer sentiment based on customer demographics

As Nigel says in his foreward to the report,

I don’t always enjoy being right. My prediction that the Quarter 2 Index of Consumer Sentiment would “suffer a body blow” has turned out to be.

Download the full report now and let us know if you have any questions.