Period covered: July 24Published: July 25, 2024Read time: 1min

Consumer Sentiment Monitor

Consumer Sentiment Monitor - July 2024

Dr Kris Hamer | Director of Insight | British Retail Consortium

“Following a dip in consumer optimism towards the UK economy in June, the latest results reveal a strong uplift in July, with a 9 percentage points increase in consumers expecting the economy to improve over the next few months. Pessimistic responses decreased across all generations, particularly among the Gen X group. There was also a more favourable outlook towards personal finances this month, with a 3 percentage points increase in consumers expecting an improvement over the next three months.

Consumer spending plans over the next three months saw little change overall, with those expecting to spend more dropping slightly from the previous month. However, Gen Z consumers showed a strong increase, with almost half planning to spend more, overtaking Millennials. Saving expectations improved due to fewer consumers expecting to save less than the previous month. Among those planning to reduce spending, top strategies include buying fewer items and cutting down on leisure activities.​

This month, we also surveyed parents about financial pressures during the school holidays and found that 40% expect increased financial strain, mainly due to higher grocery bills and spending on days out with their children.​

The resurgence in consumer optimism in July is a positive sign for the UK economy, reflecting growing confidence. This suggests that consumers are becoming more resilient and hopeful about the future, which could boost economic activity. Retailers that stay adaptable and responsive to these changing consumer behaviours will maximise opportunities and drive customer loyalty."