In February 2026, UK consumer sentiment has shown a continued decline, with households increasingly worried about rising debt levels. A recent poll by S&P Global indicates that while the rate of decline has slowed compared to January, the overall sentiment remains at its lowest since the previous year, raising concerns about future consumer spending and economic growth [1].
What Happened
- Consumer confidence in the UK fell further in February, driven by heightened anxiety over personal debt and financial stability [1].
- The S&P Global poll revealed that the appetite for major spending has receded to its weakest level in ten months, indicating a cautious approach among consumers [1].
- Concerns about loan availability have intensified, with many households reporting difficulties in accessing credit [1].
- Despite the decline in sentiment, the rate of deterioration has moderated compared to January, suggesting some stabilization in consumer attitudes [1].
- As consumer confidence wanes, the implications for retail and service sectors could be significant, potentially leading to reduced sales and slower economic growth [1].
Why It Matters
The decline in consumer sentiment is particularly concerning as it reflects broader economic challenges facing the UK. With households increasingly worried about their financial situations, the potential for reduced consumer spending looms large. Consumer spending is a critical driver of economic growth, and a sustained decline in confidence could lead to a slowdown in various sectors, including retail and services.
Moreover, the reported difficulties in accessing loans may exacerbate the situation, as consumers may be unable to finance significant purchases or investments. This could further dampen economic activity and lead to a cycle of reduced spending and economic contraction.
As the UK navigates these challenges, policymakers will need to monitor consumer sentiment closely and consider measures to bolster confidence and support household finances. The current economic landscape suggests that without intervention, the UK may face a prolonged period of sluggish growth.
Signals To Watch (Next 72 Hours)
- Monitor updates from the Bank of England regarding interest rates and monetary policy, as changes could influence consumer borrowing and spending behavior.
- Watch for retail sales data releases, which may provide insights into consumer spending trends amid declining sentiment.
- Keep an eye on news related to household debt levels and loan availability, as these factors will be critical in assessing consumer confidence.
- Observe any government announcements regarding economic support measures aimed at households, which could impact consumer sentiment positively.
- Track developments in the broader economic indicators, including GDP growth forecasts, which may reflect the implications of consumer sentiment on the economy.
In summary, the decline in UK consumer sentiment signals potential challenges ahead for the economy.
Sources
- UK consumer sentiment falls as households worry about debt; Japan and Switzerland avoid recession – business live — The Guardian Business · Feb 16, 2026