While figures released today confirmed that the retail sector is continuing to struggle, separate data shows that the upward momentum in consumer confidence has continued this month.
GfK’s Consumer Confidence Index increased two points to -17 in May, with four measures up and one down in comparison to last month’s announcement.
“There was another strong showing for the UK Consumer Confidence Index this month, driven by a jump in the outlook for our personal finances (up five) and a boost for our view on the wider economy in the coming year (up four),” said Joe Staton, Client Strategy Director GfK.
“The only negative in May is the slight dip in our major purchase measure (down one point to -26), reinforcing the fact that the cost-of-living crisis is still a day-to-day reality for all of us. However, with the latest drop in headline inflation and the prospect of interest rate cuts in due course, the trend is certainly positive after a long period of stasis which has seen the Overall Index Score stuck in the doldrums. All in all, consumers are clearly sensing that conditions are improving. This good result anticipates further growth in confidence in the months to come.”
NAM Implications:
- Its all in the detail, folks…
- …but May 2024 still looks bad.
- Much depends on your corporate (and rivals) risk profile…
