Consumers have suffered a decade of gloom because the financial system fails to ship, says report

British consumers have been gloomy for a decade and the economy ‘resembles an untethered boat drifting slowly out to sea’, according to a report.

The closely-watched GfK consumer confidence barometer remained firmly in negative territory this month, falling five points to -22 – meaning it has clocked up ten years in reverse.

It comes as store chain B&M issued its third profit warning since the summer after sales fell 0.6 per cent in the quarter to December 27. 

Primark, which counts singer Rita Ora as an ambassador, also confirmed a bleak update from two weeks ago, in which it blamed weaker sales over the key Christmas period on a ‘difficult clothing market’.

And book seller The Works flagged ‘subdued consumer confidence’, alongside a fiasco within its online supply chain, as it posted a 4.2 per cent drop in sales over the 11 weeks to January 18.

There was a ray of light, however, with Young’s pubs posting bumper Christmas trading.

Slump: Primark, which counts singer Rita Ora (pictured) as an ambassador, blamed weaker sales over the key Christmas period on a ‘difficult clothing market’

But the Confederation of British Industries (CBI) said that even though its measure of retail sales volumes contracted at a slower rate in January than in December, worse is still to come.

CBI economists said sales are expected to decline at a quicker pace next month, spelling another blow for the High Street as it braces for higher costs this spring.

Neil Bellamy, consumer insights director at GfK, said: ‘January 2026 brings an unwanted anniversary, marking ten years since consumer confidence was last in positive territory.’

Despite a slight improvement in January, he said ‘we remain a long way from consumers feeling that better days are around the corner’.

Bellamy added: ‘Consumers are once again focusing on what they can control – their own spending and saving – while confidence in the wider economy remains low. 

To many consumers, the UK economy is beginning to resemble an untethered boat drifting slowly out to sea.’

B&M’s bleak update saw it downgrade its profit guidance to between £440million and £475million for the year to March, below its previous guidance of £470million-520million.

Chief executive Tjeerd Jegen, who joined in June, said his efforts to ‘reset’ the retailer ‘continue to progress at pace’.

And Primark owner Associated British Foods reiterated that it has been hit by weaker European sales at the fashion chain.

High Street firms face increases to business rates and wages in April, on top of the tax raid on employers in the 2024 Budget when firms were hit with a surprise increase to National Insurance contributions.