LONDON — Confidence among UK consumers has climbed to its highest level in nearly two years, providing a fresh positive signal for Britain's economy as households increase spending during the summer.

According to the latest Barclays consumer survey, 30% of consumers said they were confident about the UK economy in July, while consumer card spending increased by 2% year on year. Discretionary spending also rose by 1.6%.

The improvement was supported by several factors, including the conclusion of the 2026 men's football World Cup, increased domestic tourism and greater optimism following the recent political and economic developments.

British pubs, cinemas and domestic holiday businesses benefited from stronger summer demand. Spending on UK holidays increased as hot weather encouraged more people to travel within Britain rather than take overseas trips.

The stronger consumer mood could provide a welcome boost for retailers and hospitality businesses after a period of cautious household spending. However, the recovery is not uniform, with consumers remaining more careful about expensive purchases such as furniture and electronics.

The improvement in sentiment also comes as Britain's employment market shows tentative signs of stabilisation, potentially giving households greater confidence about their financial prospects.

For UK businesses, stronger consumer confidence could become an important driver of second-half economic activity. Retailers, restaurants, entertainment companies and domestic tourism operators will be watching closely to see whether the July improvement continues through the autumn.

The latest figures therefore offer an encouraging signal for the British economy, although continued inflationary pressure and geopolitical uncertainty could still affect household spending in the months ahead.