Commenting on the survey, Maryam Baluch, Economist at S&P Global Market Intelligence, said:

“The first indicator of household confidence since the Autumn Budget makes for disappointing reading. Sentiment towards the financial outlook over the coming 12 months has soured to the gloomiest in two years. Current financial conditions facing households also reportedly deteriorated at an increased rate in December, driven by a further marked reduction in cash available to spend and a rising need to take on more debt.

“Confidence in the labour market also wavered. Sentiment reached to its lowest point in six months with signs of job security starting to deteriorate.

“Overall, the combination of subdued household confidence and early signs of job insecurity underscores the ongoing challenges facing UK households as they navigate an uncertain economic environment at the turn of the year.

“Not surprisingly, spending intentions have worsened in this deteriorating financial environment, suggesting consumers are unlikely to provide much of a boost to the economy as we head into 2026.”