The Index of Consumer Sentiment has proven its value as an indicator of how customers are feeling, and therefore how they’re likely to behave. Consumer sentiment responds quickly to changes in the macroeconomic climate, and we’ve also seen links between customer confidence and spending. This is an important measure for any business or organisation who needs to understand the mood of the UK consumer.

The latest report shows that some groups have continued their downward trend from Q2, others have bounced back up. The segmented regression that we look at each time now suggests that Q1 2026 may have been a turning point into a new, downward, trend. Q4 data will confirm or reverse that trend.

Key headlines from the Q3 report include:

• The Index of Consumer Sentiment has risen 1.6 points to 68.6 in Q3 2026.

• Consumer sentiment has recovered more strongly in the USA, but UK consumers (68.6) remain significantly more confident than those in the USA (55.2).

• Age is the most important driver of sentiment, with those aged 25–34 much more optimistic (despite declining in Q3)

• Health and money worries remain consistently prominent for consumers.

• The environment, having been pushed aside for a while by high-profile issues in the news such as debate around immigration and conflict, has jumped back up as a worry in the latest report.

• Competition for jobs is the top concern for 18 to 24 year olds, supporting the idea that this may underpin their recent decline in confidence.

• The impact of AI on jobs looms large for all age groups.