Consumer confidence has improved for the fourth month in a row after hitting record lows during the cost of living crisis, although the overall picture remains relatively bleak.
GfK’s Consumer Confidence Index for May rose by three points to minus 27 after slumping to minus 45 in January. The latest reading is the highest since February 2022, just before the war in Ukraine sent energy prices soaring.
All measures used to calculate the overall figure were up in comparison to last month’s announcement.
Joe Staton, GfK’s client strategy director, noted that the figure was still deep in negative territory and the economic situation was a long way from any “sunny uplands”. However, he noted that the overall trajectory this year was positive and might reflect a “stronger underlying financial picture across the UK than many would think”.
NAM Implications:
- Key to factor consumer challenges yet to come, into assessment of consumers’ willingness to spend.
- Particularly as some degree of confidence is possibly coming from a realisation that moves to discounters and own-label are passable alternatives…
- Therefore, longer term could represent a time of greater challenges for branded suppliers…
- i.e. Watch this space…
