UK consumer confidence improves; retail spending intentions jump seven points

The improvement in personal finances was driven by an optimistic Gen Z, Dickinson said. That same generation also reported a bump in spending plans. Summer heatwaves are expected to give way to more shopping-friendly temperatures in much of the country, which could support retail footfall.

Dickinson warned the improvement could prove fragile if household costs continue to rise. The Burnham administration was benefiting from a "honeymoon boost" in confidence, she said. Maintaining momentum would depend on the government reducing pressure on consumers and businesses. "The Budget will be the acid test of this government's real commitment to growth," Dickinson said. "If the government can reduce retail business costs, from energy bills to business rates, it will be ordinary households who feel the benefit. A Budget that backs retail and reduces costs is a pro-consumer Budget."

The data comes as retailers await the government's autumn Budget. Dickinson said the Budget would determine whether the improvement in confidence translates into stronger retail sales. Reducing business rates and energy costs would allow retailers to pass savings to consumers, she said. Without such measures, the improvement could stall.

The findings were based on a survey of 2,000 UK adults conducted by Opinium for the BRC between 4 and 7 August.