UK consumer confidence has shown signs of recovery after months of record lows, according to Dentsu's upcoming consumer navigator report. The improvement is attributed to easing trade tensions and a recent interest rate cut.
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By the end of May, 28% of respondents rated the economy as being in "good or excellent" shape, up from under 20% three months earlier. This marks a notable rebound from April, when 80% of the public had a negative view of the economy.
Gen Z consumers were the most upbeat, with 51% expressing economic optimism, compared to 35% the previous quarter. In contrast, 58% of baby boomers said they expected conditions to worsen.
Despite signs of stabilisation, 58% of consumers now expect the economy to remain stable or improve over the next six to twelve months, 47% still reported struggling with affordability, a figure unchanged from earlier in the year.
Dentsu UK&I CEO Annette Male commented on the data, stating: 'While challenges remain, there's a cautious return of optimism, especially among younger generations.'
Retail sales have risen for four consecutive months, aligning with this improved sentiment, despite overall consumer spending intentions remaining low earlier in the year.
Source: www.retailgazette.co.uk