British household and business confidence showed signs of improvement in August, according to a recent survey conducted by YouGov and the Centre for Economics and Business Research (Cebr). The monthly consumer confidence index rose by 0.9 points to 106.4, marking a positive shift in sentiment following a period of decline since the outbreak of the US-Iran conflict in February 2025.

The index, which reached a post-pandemic high earlier last year, reflects growing optimism among both consumers and businesses regarding the economy and their financial prospects. August represented the first full month under Prime Minister Andy Burnham’s leadership. Respondents expressed a more favorable outlook on their personal financial situation over the past month and prospects for the coming year, which often serves as an indicator for future spending and consumption patterns.

Business sentiment also strengthened, with activity measures increasing to 107.8 for the past 30 days—up from 104.9—and the outlook for the next 12 months rising to 117.7 from 115.2. Scores above 100 are interpreted as positive indicators. Sam Miley, head of forecasting and thought leadership at Cebr, noted that the rise in confidence was “broad based,” driven primarily by business activity components and supported by data showing robust economic growth in the first half of 2026. However, he cautioned that inflation and ongoing geopolitical uncertainties continue to pose challenges.

Despite overall improvements, workers reported a decline in immediate job security last month. The short-term job security index decreased slightly to 91.5 from 92.3, a figure below the 100-point threshold indicating negative sentiment. Conversely, the forward-looking employment confidence measure improved to 117.3 from 116.1, signaling more optimistic expectations for job prospects over the coming year.

The survey gathered responses from 6,000 individuals on topics including household finances, property prices, employment confidence, and business activity, as well as their forecasts for the economic year ahead.

Separately, an analysis by professional services firm PwC highlighted significant regional disparities in spending power across the UK. Disposable income in the North East and North West was found to be more than 6% below the national average—equivalent to roughly £1,500 less annually per household. In contrast, households in the South East enjoyed spending power approximately 9% above average, adding about £2,154 annually. Within London, 14 of the city’s 32 boroughs also fell below the national average for spending power.

Rachel Taylor, PwC’s government and health industries leader, emphasized the uneven distribution of prosperity throughout the country, stating that the findings revealed “stark variations not only between regions but on each other’s doorstep.”