UK consumer confidence is showing signs of improvement, with baby boomers driving the biggest rise in optimism among shoppers, according to new research from the British Retail Consortium (BRC).

The BRC Consumer Sentiment Monitor found that confidence in the UK economy increased for the third month in a row in July 2026. Overall confidence in the state of the economy rose by six percentage points to -37.

The improvement was mainly driven by consumers aged over 60, with baby boomers reporting a stronger outlook for their personal finances and the wider economy. However, confidence remains below positive levels, showing that many households are still cautious about spending.

Baby boomers lift consumer confidence

The latest figures highlight a growing gap between generations when it comes to consumer sentiment.

Older consumers were the main force behind the increase in confidence, helping to improve the overall mood among UK shoppers. For retailers, this shift is significant because baby boomers represent a large and influential group of consumers.

Helen Dickinson, chief executive of the BRC, described the rise among older shoppers as “a boom in sentiment”.

The improvement follows a difficult period for consumer confidence, as households have faced higher living costs, concerns about inflation and uncertainty about the economic outlook.

Earlier in 2026, BRC research showed confidence had fallen as consumers worried about rising prices and the impact on their finances.

Spending remains cautious

Although confidence has improved, UK consumers remain careful about their spending decisions.

Retailers across sectors, including food, clothing, household goods and leisure, continue to watch consumer sentiment closely because it can influence demand and purchasing behaviour.

The BRC said the latest improvement could provide some support for retailers, but warned that confidence remains fragile. Businesses are still dealing with higher operating costs and uncertainty about future economic conditions.

For many households, decisions about larger purchases are still being shaped by concerns about income, prices and the wider economy.

Retailers look for recovery signs

The rise in consumer confidence offers a positive signal for the UK retail sector after a period of changing shopping habits and cost pressures.

Retailers will be looking closely at whether improving confidence among baby boomers translates into stronger spending. However, a lasting recovery will depend on wider improvements in household finances and economic conditions.

The BRC said the latest figures showed “green shoots” of improvement, but consumer confidence has not yet returned to levels that would indicate a strong recovery.

As retailers prepare for important trading periods ahead, the strength of consumer confidence will remain a key indicator of the health of the UK economy and the outlook for retail spending.