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UK consumer confidence rises

GfK’s long-running Consumer Confidence Index increased to –10 this month. Four measures of consumer confidence rose in May and one stayed the same.

Joe Staton, client strategy director at GfK, said: “Although the overall index score is still bumping along in negative territory, we’re seeing stronger positives in measures about how consumers view their personal financial situation – a key metric impacting day-to-day spending – coupled with a less negative view of the general financial situation across the UK in the coming year. With the government forecasting an economy showing modest growth, where inflation is under control, unemployment is at multi-decade lows and the employment rate is at a record level, perhaps this sunnier picture is to be expected?

“Although the overall index score is still bumping along in negative territory, we’re seeing stronger positives in measures about how consumers view their personal financial situation – a key metric impacting day-to-day spending – coupled with a less negative view of the general financial situation across the UK in the coming year. With the government forecasting an economy showing modest growth, where inflation is under control, unemployment is at multi-decade lows and the employment rate is at a record level, perhaps this sunnier picture is to be expected?

“But before we see a leap back into the brighter positive numbers last seen in January 2016, consumers will need to be convinced in heart, head and wallet that Brexit’s murkiness has finally come to an end. And there are potentially dark clouds on the horizon with the next EU deadline of 31 October.”

The UK Consumer Confidence Survey was conducted among a sample of 2,001 individuals aged over 16-years-old on behalf of the European Commission.

Source: Talking Retail Jun 6 | In-store Analysis | What's Trending