Consumer Mindset - August 2025
In August, the Direction Score slipped into negative territory for the first time, reaching its lowest level to date. Internal sentiment weakened to 15%, while external perceptions fell sharply to -19%, shaped by the stories dominating the public agenda. Starvation in Gaza, potential tariffs on Irish exports, and the US–EU tariff deal all scored highly on the cultural index, underlining how global instability and domestic hardship are eroding confidence.
Closer to home, affordability remains the central lens through which many view their circumstances. Families in emergency accommodation, Barnardos’ warning that half of households are cutting back on essentials, and rising property and mortgage costs highlight the tangible pressures weighing on households. This mix of humanitarian crises abroad and financial strain at home helps explain why emotional sentiment has shifted from caution into pessimism.
Emotional wellbeing has deteriorated. Happiness fell sharply to 40%, its lowest point since February, while enjoyment eased to 35%. Stress remains stable at 31%, but frustration has risen to 23%, suggesting irritations are bubbling beneath the surface.
Interestingly, consumer sentiment improved slightly to 61.1, potentially lifted by reduced uncertainty after the US–EU tariff deal. However, sentiment surveys capture outlooks rather than lived experience. People may acknowledge improvements in external conditions, but daily reality tells a different story. Grocery inflation, affordability concerns, and emotionally charged news continue to dominate, creating a disconnect between cautious macro-level optimism and lived experience.
Overall, August is marked by the powerful emotional impact of news stories combined with relentless cost pressures. While consumers recognise some global risks may be easing, this reassurance is insufficient to offset financial strain and social challenges. The public feels more frustrated, less positive, and increasingly doubtful about progress. Rebuilding optimism will require not just macroeconomic stability but visible improvements in affordability, action on social issues, and greater confidence that everyday wellbeing is being protected.
For brands, these findings highlight the need to acknowledge the emotional weight of current events while staying relevant to consumers’ lived realities. With positivity in decline, frustration rising, and cost pressures front of mind, audiences may be less receptive to overly optimistic or frivolous messaging. Brands that show practical value, empathy, and support will resonate most strongly. In a climate where people are struggling, success will come from being seen as a credible partner in easing strain, not a distant commentator on stability.
