A sweeping collapse in consumer confidence is gripping Britain as the ongoing Middle East conflict stokes fresh fears of surging inflation, new data reveals. The figures paint a sobering picture of public sentiment at a moment when the UK economy had only recently begun to stabilize after years of cost-of-living pressures.
The survey, conducted by Opinium on behalf of the British Retail Consortium between March 10 and 13, captures a sharp and sudden deterioration in how ordinary Britons feel about their financial futures. Coming just weeks into a conflict that shows little sign of resolution, the numbers suggest that geopolitical instability is once again becoming a dominant force shaping household economic behavior.
Record Lows Across Key Confidence Indicators
The data reveals a dramatic deterioration across virtually every measure of consumer sentiment. Expectations for the economy over the next three months plummeted to a record low of minus 53, down sharply from minus 30 in February. Expectations for personal finances followed a similarly steep trajectory, falling to minus 17 from minus six, another all-time low.
According to the British Retail Consortium, the only index to register any improvement was spending predictions, which rose seven points to 13. That figure, however, carries a bleak undertone: the uptick largely reflects consumers bracing for higher energy costs rather than any genuine optimism about their financial position.
BRC chief executive Helen Dickinson was unsparing in her assessment. “Consumer confidence collapsed as the Middle East conflict raised the prospect of higher inflation in the months ahead,” she said. “As stock markets tumbled, confidence in both the economy and personal finances dropped to their lowest levels on record.” She noted that the decline was most pronounced among the Boomer generation, who tend to be more directly exposed to the volatility of investment portfolios and pension funds.
A Fragile Economy Faces a Familiar Threat
The timing of the confidence collapse is particularly awkward for policymakers. Britain had been making tentative progress in its battle against inflation, with price pressures easing across much of 2025. The eruption of conflict in the Middle East has now introduced a significant new variable into that equation, particularly through its effect on global energy markets.
According to Dickinson, the renewed rise in energy prices is “particularly unwelcome for businesses and families” precisely because it arrives just as conditions were improving. She called on the government to treat reducing the cost of living as a top priority, warning that new employment legislation and rising packaging taxes risk compounding the burden on retailers, costs that would ultimately be passed on to consumers.
“Government must focus on how it can minimise unnecessary costs to retailers, thereby helping protect ordinary households from the rising cost of living,” she said.
With the conflict now entering its fourth week and no clear end in sight, the survey of 2,000 UK adults offers a striking reminder of how quickly external shocks can unravel hard-won economic progress, and how exposed British households remain to forces well beyond their control.
