Consumer confidence in the UK rose to its highest level since the start of the Iran conflict, according to a survey by Opinium for the British Retail Consortium. The overall economic sentiment index improved to -28 in August from -36 in July, while personal financial expectations climbed to -9 from -12.
Personal spending on retail increased to +8 from +1 in July, and overall personal spending rose to +15 from +13. Savings intentions edged slightly lower to -5 from -4. Helen Dickinson, BRC chief executive, attributed the improvement to optimism among Generation Z consumers, noting that warmer weather and easing price pressures may have supported spending plans.
Prime Minister Andy Burnham’s administration is benefiting from reduced pessimism about the economic outlook, but sustaining momentum will require addressing household budget pressures. Retailers face ongoing competition to keep essential costs low, while regulatory and tax burdens threaten to push prices higher. The upcoming Budget will be a critical test of the government’s commitment to growth, with potential measures including reductions in energy bills and business rates to ease costs for households and businesses.
In global markets, Brent crude oil prices rose 0.27% to $91.87 a barrel amid renewed geopolitical tensions after the US-Iran ceasefire expired. US President Donald Trump announced a new campaign to isolate Iran’s economy, warning of "tremendous economic consequences" for countries that engage with Tehran, a move that could escalate tensions with China.
The US dollar weakened to three-month lows, with the dollar index dipping 0.02% to 98.799, while the euro strengthened to $1.1679, its highest level since late May. The yield on the 30-year US Treasury bond fell to 5.189% after peaking at 5.337% earlier in the week, prompting US Treasury Secretary Scott Bessent to announce plans to at least double debt repurchases. Gold prices retreated 0.6% to $4,493.49 an ounce following a 4% surge to a two-month high on Wednesday.
Asian equities advanced, with Japan’s Nikkei up nearly 1.3%, South Korea’s Kospi rebounding 5.9% after Wednesday’s semiconductor sell-off, and Hong Kong’s Hang Seng gaining 1.3%. Later in the session, UK CBI Industrial Trends data for July and US initial jobless claims for the week to August 15 will be released.
