Key Points:
- A new KPMG survey shows that 62% of British shoppers believe the national economy is currently weakening.
- About 85% of concerned citizens blame the rising cost of everyday groceries for their financial anxiety.
- Ongoing conflicts in the Middle East continue to push local energy and utility bills much higher.
- Exactly 40% of worried consumers now delay buying major expensive items like cars and home appliances.
British shoppers feel much worse about the economy today than they did just 3 months ago. A brand new quarterly survey from the accounting firm KPMG reveals a growing sense of financial fear across the United Kingdom. People point directly to the ongoing conflict in the Middle East as the main source of their money problems. This international tension directly pushes up the cost of everyday groceries and household energy bills. As these basic living expenses climb, regular citizens have much less money left in their bank accounts at the end of the month.
The polling data shows a clear downward trend in public confidence. Right now, 62% of Britons think the national economy keeps getting weaker. This represents a noticeable jump from the 58% who felt the same way back in the final quarter of 2025. People see their money buying less at the store and naturally assume the broader financial system faces deep trouble. When a majority of the population expects a downturn in the economy, they quickly change their daily habits to protect their hard-earned savings.
KPMG asked these worried citizens exactly what causes their financial stress. A massive 85% of people who see a weakening economy blame the shocking price of food at the supermarket. Right behind that, 84% point to their monthly utility bills as a primary source of pain. Heating homes and keeping the lights on cost significantly more this year. Additionally, 52% of these frustrated shoppers say the high cost of eating at restaurants or grabbing a drink at the local pub completely ruins their weekly budget.
Because people feel so nervous about the future, they actively shut their wallets. The survey found that 50% of individuals who worry about the economy cut their discretionary spending entirely. They simply refuse to buy things they do not strictly need. Furthermore, 40% of these concerned shoppers actively delay major life purchases. They refuse to buy new cars, replace old washing machines, or book expensive family vacations. This number jumped up from 34% just 3 months ago, showing a rapid freeze in big retail sales.
The individual financial picture looks bleak for a large portion of the country. A full 25% of the survey participants now describe their personal financial situation as totally insecure. This marks an increase from the 22% who felt financially unsafe at the end of 2025. When 1 in 4 people feel insecure about their bank balance, the entire retail sector suffers. Store owners struggle to sell products when their target customers stay home and count every single penny.
Linda Ellett leads the consumer, retail, and leisure division for KPMG in the United Kingdom. She closely watches how global events change local shopping habits. Ellett explained that the ongoing violence in the Middle East creates massive shockwaves for local British markets. She noted that nobody should feel surprised by this sudden drop in consumer confidence. When international wars threaten global oil supplies and shipping routes, local shoppers immediately pay the price at the gas pump and the grocery checkout lane.
To get this accurate picture of the country, researchers spoke to a very large group of people. The KPMG team successfully interviewed a sample of 3,000 citizens from all over the United Kingdom. They recently ran this comprehensive poll, gathering responses from March 5 to March 16. Talking to 3,000 different people gives the accountants a highly reliable snapshot of the national mood. The timing also means the data perfectly captures how people feel right now, at the start of spring.
If the international conflicts continue, British shoppers will likely keep their spending habits very tight. Store owners and restaurant managers must figure out how to survive while their customers avoid spending extra money. Until grocery receipts and electricity bills return to normal levels, consumer confidence will remain stuck in the gutter. The government and retail leaders face a tough challenge in convincing ordinary people that the economy actually works for them.
