Economically speaking, the last few years have been a rollercoaster. While confidence in spending has been gradually climbing back, the UK – along with France and the US – maintains a pessimistic outlook towards their financial future.
Unsurprisingly, the ongoing cost of living is one of the key reasons behind this. Younger people are more likely to experience increased household spending compared to older people and this is having an effect: over half of Gen Z agree that the rising cost of living is impacting their health and wellbeing. The positive news is that despite this, optimism for the future is highest amongst millennials and Gen Z compared to older people.
Reviewing Toluna’s latest sentiment tracker, we examined key insights on how consumers in the UK are feeling in today’s economic climate and the underlying factors at play.
Tariffs, Twitter (X) and trust issues
One area that has drawn significant attention lately is the impact of US tariffs. Younger consumers are once again feeling the impact more with over half saying they’ve changed their spending habits as a result. But even though half of those surveyed say they are less inclined to buy from American brands, we’re not seeing a full-blown boycott movement (just yet).
The latest data also shows a reduction in those saying they would avoid buying US brands; suggesting the UK-US trade deal does seem to be softening consumer sentiment. So, while tariffs are rattling some shopping baskets, the overall effect on American brands in the UK is, so far, minimal.
Another prominent player is shifting social media habits. In particular, X (previously Twitter) is seeing a noticeable drop in usage since it was acquired by Elon Musk. Which isn’t surprising considering Musk’s reputation and the growing demand for brands to reflect the values of their audiences. X’s decline points to a key takeaway: that authenticity, integrity, and trust are more than buzzwords; they’re the new brand currency.
Scroll, click, buy: the social commerce takeover
It’s no secret that social media has become a digital shopping centre, of sorts. Platforms like TikTok and Instagram are blurring the lines between entertainment and shopping, making impulse buys just a click away. Over two-thirds of Gen Z and millennials have already made purchases directly through social platforms, and this trend is only gaining steam.
AI in the mix: a double-edged sword?
And yet, though consumer appetite for e-commerce grows, it’s important for brands to remember the importance of authenticity, especially considering the rapid adoption of AI in social media.
AI is everywhere – from personalised ads to chatbots that mimic humans almost perfectly. But while AI is revolutionising marketing, there’s growing caution towards brands overusing AI and ending up sounding robotic, cold, and ultimately, fake which could result in a loss of trust and connection with their consumers.
So keep it human and honest. Our research shows people are more likely to stick with brands that feel genuine.
Curious about what else we’re seeing in consumer sentiment? Get in touch to learn more.
By Cassandra Liebmann, Senior Client Partner – Toluna
