In Q4 2025 consumer sentiment has increased to 71.1, the first rise in 2025. There is no clear long-term trend, but consumer sentiment seems to have settled at a level lower than its pre-Covid status quo.

The overall trend still seems to be downward, but there are signs of optimism and subgroups within the data that show strong positive trends (notably younger people). Key findings include:

• The Index of Consumer Sentiment has risen 3.1 points to 71.1

• Consumer sentiment in the EU has followed a similar course to that in the UK, whereas US consumer sentiment is in a clear long-term slump

• Younger people have significantly higher sentiment

• Sentiment correlates positively with household income, but the biggest decline through 2025 has been for those on a household income of £40,000 to £49,999

• Despite a much-discussed budget (which we spoke to consumers about in more detail) Q4 has seen consumer sentiment finish 2025 relatively strong