UK consumer sentiment falls as Iran war rages: KPMG

[LONDON] British consumer sentiment this month was slightly weaker than three months earlier, pushed down by worries about grocery and energy costs linked to the conflict in the Middle East, according to a quarterly survey from accountants KPMG.

Half of people who thought the economy was worsening had cut spending as a consequence, and 40 per cent of them were deferring major purchases, up from 34 per cent three months ago.

“Considering the backdrop of the ongoing conflict in the Middle East, and the actual and potential impact on energy and grocery prices, it is not a surprise that we are seeing heightened consumer concern about the economic health of the UK,” said Linda Ellett, head of consumer, retail and leisure for KPMG UK.

Some 62 per cent of Britons thought the economy was weakening, up from 58 per cent in Q4 2025.

About 85 per cent of those who judged the economy to be weakening cited the cost of groceries, followed by 84 per cent mentioning utility bills and 52 per cent the cost of eating or drinking out.

About 25 per cent described their financial situation as “insecure”, up from 22 per cent in Q4.

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The poll was based on a sample of 3,000 people and took place from March 5 to March 16. REUTERS