Source: Sharecast
The S&P Global consumer sentiment index, which tracks confidence levels across a panel of 1,500 UK households, fell to 44.6 this month, down marginally from 44.7 in December.
This was the four straight decline for the index and the lowest level since April 2025, with labour market sentiment and savings levels falling over the month.
Maryam Baluch, economist at S&P Global Market Intelligence, said the data painted a "persistently downbeat picture among UK households".
Notably, the index tracking households' current finances fell to a nine-month low of 39.7 in January from 40.7 in December, with people across all 12 major UK regions reporting a worsening in their financial wellbeing.
"Concerningly, labour market expectations have deteriorated. Households reported income growth from employment slowing to its weakest pace in ten months, coupled with rising concerns over job security," Baluch said.
“This job market uncertainty prompted households to maintain a cautious stance on discretionary spending. However, savings nevertheless continued to come under pressure, with some households slipping into deficit to manage elevated living costs and relying on loans to bridge financial gaps."
As a result, January saw a rise in demand for unsecured credit, which fed through to higher household debt, while challenges in accessing unsecured loans persisted.
