The Index of Consumer Sentiment Quarter 2 2025

The overall Index of Consumer Sentiment has fallen 4.1 points to 70.4, in what now seems to be a significant turn away from what had been an upward long-term trend.

This report draws out the most interesting findings from the Quarter 2 2025 data and looks at the several factors that could shape the trajectory of consumer sentiment.

Download your PDF copy of the report now.

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Are we seeing a consistent downward trend?

In Q2 2025 consumer sentiment has fallen to 70.4, and despite the short-term impact of a new government and a controversial budget it now seems that we may be looking at a consistent downward trend.

  • The Index of Consumer Sentiment has fallen 4.1 points to 74.1

  • Consumer sentiment in the USA plummeted from Q1 to Q2

  • EU consumer sentiment has been flat since Q4 2022, while UK and US sentiment has been much more volatile

  • Consumers over 45 are much more pessimistic than younger people, and the gap is widening

  • Sentiment correlates with household income, but the biggest decline from Q1 to Q2 has been for those on a household income of £40,000 to £49,999

  • Labour voters are the most positive group, but their index has declined from Q1 while that of Conservative voters has increased

TLF Research founder, Nigel Hill, had the following to say in his foreword:

As we know, consumers’ expectations have a major impact on their decisions about how to behave now and plan for the future, especially decisions regarding how they spend their money. The Q2 results should therefore be taken very seriously by organisations that can influence Consumer Sentiment and by companies that may need to adjust their strategies to respond to it. The Government is by far the organisation best placed to influence sentiment, and it seems to be aware of this as it’s already making considerable efforts to talk up the future prospects of the economy, but the Q2 results and the Barclays report show their efforts are either not being assimilated or not being believed.

Download the full report now and get in touch if you have any questions.

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