Confidence in the UK economy has dropped sharply over the past decade, falling from 45% in 2015 to just 28% today, according to Barclays’ 10 Years of Spend report.
The decline follows years of economic strain driven by Brexit, the pandemic, geopolitical tensions and the cost-of-living crisis.
Despite this, consumers have remained surprisingly resilient in their spending.
Discretionary outlays, spending on non-essential items, have grown at an average of 9.2% per year between 2021 and 2024, outpacing the 5% growth seen in essential spending. Confidence in non-essential spending has averaged 53% over the ten-year period.
The report, based on transaction data and over 200,000 consumer surveys, found that 66% of people are now more budget-conscious than a decade ago. Nearly half say they feel no better off than they did ten years ago.
Shoppers continue to hunt for value, with 65% on average trying to cut grocery bills, peaking at 73% last April.