Consumer spending is still stubbornly subdued. The latest Deloitte Consumer Tracker data shows that compared with Q2 net spending was down in Q3 2025 across both day-to-day and non-essential spending. The data is more mixed when looking at the category level, while consumers spent more on groceries due to rising food inflation they spent less on housing as lower interest rates feed through to mortgages and rent. Our data also points to consumers trying to reduce their everyday expenditure to manage the increasing costs of food and energy for the home. Despite Q3 coinciding with the high season for the hospitality and leisure sectors, consumers in our survey reported lower levels of spending on restaurants and going out compared with both the previous quarter and the same period a year ago. Although modest, demand for bigger ticket items such as appliances, electricals and furniture was up very slightly both compared with the previous quarter but also year on year pointing to the start of some possible easing in consumers’ attitudes to making large purchases. 

To understand spending sentiment better, our survey has been measuring consumer attitudes to spending in terms of expansionary and defensive behaviours. The results show that in Q3 there was a higher proportion of consumers agreeing they have adopted more defensive behaviours such as only spending on essentials or buying more food and drinks on discounts compared with the previous quarter. At the same time, the net proportion of consumers saying they have adopted expansionary behaviours such as spending more on experiences or spending more on luxuries and treat has dropped this quarter compared with the previous quarter. Overall, our data continues to suggest that consumer spending faces significant headwinds. 

There are also concerns about a weakening of demand for labour among corporates. Deloitte’s latest survey of CFOs showed that their projections for hiring have dropped, with hiring expectations now close to their post-pandemic lows. In addition, the survey  reported the sharpest rise in CFOs’ expectations for operating costs in more than four years and  have responded by focusing on cost control, building cash reserves and reducing debt. 

Outlook for Q4 2025

According to our Tracker data, consumers expect to spend more on day-to-day expenditure and significantly less on discretionary categories in Q4. Essential categories impacted by persistent inflation are expected to drive an increase in consumer spending including in groceries and utilities. Subsequently spending in most discretionary categories including those related to socialising is expected to fall in the final quarter of the year, with consumers cutting their non-essential spending to afford day-to-day living expenditure. As a result, consumer products businesses are struggling to find profitable growth in an environment of increased input costs, sluggish consumer demand and heightened competition from supermarkets’ own-label products. In addition, higher levels of inflation since the pandemic have affected consumer views of what is a fair price and what is good value. These shifts in value perceptions have led to higher levels of value-seeking behaviours including more cost-conscious, deal-driven, or convenience-sacrificing behaviours, with higher proportions of consumers across all demographics expecting more value for the asking price. Brands across most consumer sectors have options to bolster their perceived value and strengthen their competitive positions while opening new pathways to margin expansion. In a recent report, Deloitte highlighted  that certain brands enjoy higher perceptions of value than would be predicted based on their prices, suggesting they are especially good at providing additional value. Given the increased price sensitivity of consumers, brands that get the pricing right and boost consumer perceptions of their value will be well positioned to attract consumers, increase their margins and build long-term loyalty.