Not for the first time, UK consumer sentiment, and the underlying economic pressures it reflects, have been knocked back by external forces just as they seemed to be gathering strength.

Consumer sentiment stepped down significantly in Q2 2026, with conflict in the Middle East affecting oil prices and knock-on effects reaching into almost every sector of the economy.

Taking a longer-term view, we’ve found a growing polarisation in our sentiment data that has reached a head in the most recent quarter - although the overall score has gone down, the proportion of very optimistic consumers has actually increased. In this report we’ll dive into what we know about what accounts for this move to the extremes.

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As well as the overall index, there are two sub-indices. The Index of Current Economic Conditions (ICC) reflects how consumers feel about the current situation. The Index of Consumer Expectations (ICE) reveals their confidence about the future. Comparing all three indices gives a good sense of how customers feel right now versus their view of the future prospects for the economy, both of which have important implications for their likely spending behaviour.

Download the latest report to find out more about our methodology and a range of detailed analysis.