Global Tensions Impact UK Retail as Consumer Caution Grows
Consumer spending growth in the UK is projected to slow significantly in 2026 due to ongoing conflicts in the Middle East, which are adding pressure to household budgets. According to EY's UK Economic Outlook, consumer spending is expected to grow by only 0.3% this year, a decrease from the previously projected 0.9%. The report highlights a shift in household spending patterns since the pandemic, with more income being allocated to essentials and savings. Rising utility bills, housing costs, and mortgage payments are further impacting consumer confidence. EY warns that disruptions to shipping routes and energy supplies could exacerbate challenges for retailers already facing margin pressures. 
