After months of record-low consumer confidence, new data from dentsu’s upcoming Consumer Navigator Report suggests a potential turning point for the UK economy. Signs of recovery are emerging, offering renewed hope for consumers and brands alike.
According to the new report from the global marketing group, at the end of May confidence in the UK economy had notably improved, with 28% of consumers now describing it as in good or excellent shape, up from less than 20% just three months ago. This shift marks a significant rebound from the “Awful April” period, when 80% of Brits viewed the economy negatively.
Gen Z leads the optimism charge, with over half (51%) now saying the economy is performing well — up from just 35% in the previous quarter. Boomers are the most pessimistic: 58% expect things to get worse, with 18% choosing “significantly worse”.
A key factor behind this shift may be the recently announced US-UK trade agreement, which eases tariffs on British exports like cars, steel, and agricultural goods – offering a welcome signal of stability and growth to consumers and businesses alike.
This cautious optimism is also reflected in planned big-ticket spending. In the next three months, holidays top the list, with 30% of consumers – across all generations – planning major travel-related purchases, particularly Boomers (36%), Gen X (29%), and Millennials (28%). Household repairs and upgrades follow at 18%, especially among Millennials (22%) and Boomers (18%), suggesting continued investment in the home. Gen Z stands out for prioritising premium exercise and wellness memberships (22%), reflecting wellness-driven values and trend sensitivity.
Private medical expenses are also a focus for younger consumers, with 14% of both Gen Z and Millennials planning such spending, while older generations show less interest – possibly due to NHS reliance or existing coverage. Meanwhile, 13% of Gen Z are planning for significant life events like weddings or milestone birthdays, highlighting a generational emphasis on experiences.
While 58% of consumers now believe the economy will remain stable or improve over the next 6–12 months, financial pressures persist. Nearly half of the population (47%) still report struggling to afford many of their expenses, a figure unchanged from earlier this year.
Annette Male, CEO UK&I at dentsu, commented: “We’re seeing early signs of a shift in consumer sentiment. While challenges remain, there’s a cautious return of optimism—especially among younger generations.
“Although a small change, marketers will be encouraged to see consumers feeling more confident about the future with an appetite to increase their spending, but brands should remain sensitive to the financial pressures their customers continue to face.”
The new Consumer Navigator Report will be published later this month and will provide brands with the insights they need to navigate this evolving landscape and connect meaningfully with consumers, particularly in the retail space.
