UK Consumer Sentiment Falls to 42.1 as 51% of Britons Expect Rate Rise
Updated
Updated · The Guardian · May 18
UK Consumer Sentiment Falls to 42.1 as 51% of Britons Expect Rate Rise
2 articles · Updated · The Guardian · May 18
S&P Global’s UK consumer sentiment index slipped to 42.1 in May from 42.3, its lowest since July 2023, as households grew more pessimistic about finances ahead of fresh inflation data.
Rising prices became Britons’ top financial concern, with higher fuel and energy costs straining budgets and driving the fastest drop in household savings since July 2023.
51% of the 1,500 people surveyed now expect interest rates to rise — the highest share in two and a half years — as Bank of England officials warn persistent oil-driven inflation could force tighter policy.
The Bank has warned typical energy bills could jump 16% to £1,900 by summer and food prices rise 7% by year-end, even as April inflation is expected near 3%, still above the 2% target.
Job insecurity hit its highest since March 2023 and appetite for big-ticket purchases stayed among the weakest in almost three years, pointing to softer consumer spending and slower growth.
With consumer gloom at a record low but GDP showing growth, what is the true state of the UK's economic health?
As Mideast conflict drives energy costs, is Britain's reliance on gas locking it into a permanent cycle of economic crisis?
Amidst AI job losses and a mental health crisis, are Britain's youth facing a future of permanent economic insecurity?
UK Consumer Sentiment Hits 14-Year Low: Inflation, Interest Rates, and Geopolitical Tensions Drive Economic Anxiety in May 2026
Overview
UK consumer sentiment in May 2026 has dropped to its lowest level in years, driven by escalating concerns over inflation and the rising cost of living. As household savings erode at a pace not seen since 2011, many consumers feel anxious about their future financial stability. This anxiety is made worse by a widespread belief that interest rates will soon increase, leading to even more constrained household finances. Combined with worries about job security, these pressures are causing people to cut back on spending, which is expected to slow down overall economic growth.