Confidence in UK economy drops from 45% in 2015 to 28% now: Barclays
Confidence in the strength of the UK economy has dropped from 45 per cent in May 2015 to 28 per cent now following Brexit, the COVID-19 pandemic-induced lockdowns, a cost-of-living crisis, rise of Gen Z and geopolitical issues, according to Barclays '10 Years of Spend' survey report.
But confidence in non-essential spending has been strong, at an average of 53 per cent from 2015 to now, the report revealed.
Confidence in UK economic strength has dropped from 45 per cent in May 2015 to 28 per cent now following Brexit, the pandemic, a cost-of-living crisis, rise of Gen Z and geopolitical issues, a Barclays survey found. But confidence in non-essential spending has been strong, averaging 53 per cent from 2015 to now. Confidence in household finances has been resilient, never dipping below 52 per cent.
Despite financial pressure, households' discretionary spending has grown by 9.2 per cent annually on an average between 2021 and 2024, outpacing essential spending's 5-per cent growth.
Confidence in household finances has remained resilient, never dipping below 52 per cent, and averaging 69 per cent in the last 12 months.
Therefore, confidence in household finances has proven to be more resilient than confidence in the wider UK economy.
Consumers are becoming increasingly savvy, paying more attention to their budgets, value for money and pricing tactics than ever before, a release from Barclays noted.
Spending priorities are shifting; growth in discretionary purchases has outpaced essential spend since 2021, led by beauty, entertainment and travel.
British adults' confidence in their ability to live within their means has held strong, reaching 74 per cent in May 2025, on par with 2019's figure of 73 per cent, when Barclays started tracking this measure, potentially due to more prudent budgeting.
Sixty-six per cent pay more attention to their budget than they did a decade ago, while 45 per cent say they don't feel better off than they did 10 years ago.
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