Baby boomer bump gives boost to consumer confidence

The latest BRC Consumer Sentiment Monitor for July 2026 showed that consumer confidence in the state of the economy improved by six percentage points to -37 in the period.

Consumer confidence in their own financial situation also improved, although less markedly, by three percentage points to -12.

Personal spending on retail fell four percentage points in the period, however, down to +1 in July from +5 in June.

Personal overall spending also dipped in the period, down three percentage points month on month to +13. Correspondingly, personal saving inched up to -4.

British Retail Consortium chief executive Helen Dickinson said it was the third straight month of consumer confidence improving and was driven largely by older consumers.

“Consumer confidence improved for the third month in a row, thanks in large part to a bump in sentiment among baby boomers. This rise may have been driven in part by Andy Burnham’s confirmation as the next PM, ending a period of political instability, as well as by a national feel-good factor of England progressing through the World Cup knockout stages. But we should not mistake this for recovery: only around one in 10 expect the economy to improve in the future, and spending intentions remain more modest, though this may reflect lower inflation expectations, rather than tighter budgets.

“While the direction of travel is encouraging, confidence remains fragile, with cost-of-living pressures continuing to weigh heavily on many families. While retailers are doing all they can to keep prices affordable for customers, the government can play its part to reduce the cost burden on the industry, giving retailers the breathing room to invest in lower prices for the future. By tackling spiralling business costs, Andy Burnham will be helping retailers to drive down the cost of living for everyone.”