Consumer sentiment in the UK is showing its first real signs of improvement, according to new data from global marketing group dentsu.
The company’s upcoming Consumer Navigator Report points to a rebound in confidence after a prolonged period of pessimism.
At the end of May, 28% of UK consumers described the economy as in good or excellent shape.
This marks a notable increase from less than 20% just three months ago, and a sharp reversal from April’s lows.
During “Awful April”, around 80% of Britons said they viewed the economy negatively, dentsu’s data shows.
The latest figures indicate that optimism is rising across age groups, but it is being driven by younger generations.
Gen Z leads the way, with 51% now saying the economy is performing well, up from 35% the previous quarter.
Boomers remain the most sceptical. Fifty-eight percent of them expect the economy to worsen, with 18% predicting it will get “significantly worse”.
The newly announced US-UK trade deal may be boosting optimism. The agreement eases tariffs on UK exports such as cars and steel.
This move has been seen as a signal of potential stability and renewed growth, both for consumers and businesses.
Spending plans reflect this cautious optimism. Thirty percent of consumers plan a major travel-related purchase in the next three months.
This includes 36% of Boomers, 29% of Gen X, and 28% of Millennials, according to the dentsu data.
Household repairs and home upgrades are also on the agenda. Eighteen percent of respondents plan such investments, led by Millennials (22%).
Gen Z stands out with a focus on wellness. Twenty-two percent plan to spend on premium fitness or wellness memberships.
Younger consumers also plan more for private medical costs. Fourteen percent of both Gen Z and Millennials are budgeting for healthcare.
In contrast, older generations show less interest in private healthcare, likely due to NHS access or existing insurance.
Gen Z also values life events. Thirteen percent are preparing for weddings or milestone birthdays over the next few months.
Despite growing optimism, financial stress remains a reality. Forty-seven percent of respondents still struggle to cover many expenses.
That figure has not changed from earlier this year, signalling that recovery remains uneven across income groups.
Annette Male, CEO UK&I at dentsu, said: “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 full Consumer Navigator Report will be released later this month. It is expected to provide deeper insights for brands navigating today’s evolving consumer landscape.