80% of Brits believe economy is in a poor shape, with almost half of the population admitting that they struggle to afford the necessities

New research released by global marketing group dentsu has revealed that consumer confidence is plummeting, with four in five (80%) Brits believing the economy is in a poor state. A quarter of respondents (26%) describe the current situation as ‘terrible’.  

According to dentsu’s latest Consumer Navigator Report almost half of the population (46%) have struggled to afford necessities like food, utilities, and rent or mortgage payments in the last 30 days.  

In a month coined ‘Awful April’, due to significant hikes in council tax and utilities bills, UK economic sentiment has ranked as one of the lowest in Europe. Only France is on par, with 81% of respondents believing that their economy is in a poor state. Contrastingly, whereas in France (19%) and the UK (20%) believe the economy is in good or excellent shape, Poland has a more positive outlook, with 46%, and 37% of Americans feeling more confident about the economic situation.  

Economic conditions driving changes in spending habits 

The majority of Brits do not see light at the end of the tunnel, with 47% predicting the economy will get worse in the next 6 – 12 months and, against this backdrop, many are adjusting their spending habits.  

Some have opted out of making bigger purchases such as designer clothes (70%), new tech (66%) and household appliances (72%) altogether in the last 30 days. However, many are still spending on ‘smaller treats’, increasing spending on activities such as dining out (33%) and ordering fast food (32%). Perhaps looking for comfort in more challenging times? 

Further increases in spending have been reported across essentials such as groceries, which almost two thirds (63%) of Brits say they have spent more on in the last month. Similarly, respondents have found themselves needing to put more money towards petrol and gas (36%), and clothing and footwear (35%).   

Annette Male, CEO UK&I at dentsu said: “In this challenging economic climate, affordability and moments of treat-seeking have become pivotal to consumer decision-making. As spending habits shift, brands must balance sensitivity to these financial pressures with a steadfast focus on their long-term marketing strategies, ensuring they remain positioned to drive future growth while addressing immediate consumer needs.” 

Male continued: “In uncertain times, the brands that succeed are those that listen most effectively: transforming insight into competitive advantage and relevance into long-term loyalty.” 

Download the Q1 2025 UK Consumer Navigator Report now and unlock insights that drive real impact.