Credit, Collections & Insolvency News
Consumer confidence has risen for the fourth month in a row to its highest in 15 months as households take a more positive view about the economy and their finances, despite inflation still in double digits in May.
GfK’s headline confidence index showed a rise to -27 in May from -30 in April, moving further away from the -49 record low last September when former prime minister Liz Truss’s “mini-budget” showed chaos in financial markets.
May’s rise took the index to its highest since February 2022 with households grappling with high inflation which was running at 10.1% in March with the cost of food and drinks surging by the most since 1977.
GfK said all measures of consumer sentiment edged up compared to the previous month.
GfK’s sub-index of shoppers’ willingness to make expensive purchases also rose while its gauge of savings intentions was unchanged from the previous month.
Joe Staton, Client Strategy Director at GfK, said “The overall trajectory this year is positive and might reflect a stronger underlying financial picture across the UK than many would think.”
“But everybody must hold on tight as it could still be a rocky ride out of these tough times.”
