The Index of Consumer Sentiment Quarter 3 2023

In Q3 2023, consumer sentiment has fallen after two quarters of relatively rapid growth. It remains higher than for most of 2022, but still suggests a downward overall trend in the optimism of UK consumers.

The Index of Consumer Sentiment has proven its value as an indicator of how customers are feeling, and therefore how they’re likely to behave. Consumer sentiment respond quickly to changes in the macroeconomic climate, and we’ve also seen links between customer confidence and spending. This is an important measure for any business or organisation who needs to understand the mood of the UK consumer.

Download the latest report to explore the findings in more detail.

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Downward Trend

After a bleak 2022, the first half of 2023 saw an upswing in consumer sentiment (although it never reached pre-pandemic levels). In Quarter 3 consumer confidence began to wane, falling back 5 points to 64.5.

We’ll share what we know about what’s driving the change in the report, but it’s hard not to conclude that the overall trend is downward.

The key findings

  • The Index for Consumer Sentiment has fallen 5 points to 64.5, back to its Q1 level

  • The Q2 spike in optimism about the future of the economy has bounced back

  • The Index of Consumer Sentiment correlates strongly with inflation and other macroeconomic measures

  • US consumer sentiment has overtaken the UK and EU consumer sentiment remains higher

  • 21% of consumers say that their main worry is not being able to afford the basics

  • Women are, again, scoring lower than men and consumers over 45 are much more pessimistic than younger people

TLF Research founder, Nigel Hill, had the following to say in his foreword:

Some groups have much stronger Sentiment than others and this is reflected in their real-life spending behaviour.

Download the full report now and let us know if you have any questions.

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