Consumer confidence continues to recuperate regardless of dwelling price pressures – survey
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onsumer confidence within the yr forward is constant to recuperate regardless of persistent cost-of-living pressures, a long-running survey suggests.
GfK’s Consumer Confidence Index rose by three factors in May to minus 27, the fourth month-to-month improve in a row from January’s minus 45.
Confidence in private funds over the approaching 12 months noticed a “robust” five-point soar to minus 8 – 17 factors increased than this time final yr.
Expectations for the overall financial state of affairs over the subsequent yr elevated by 4 factors, remaining at a firmly adverse minus 30 however 26 factors increased than final May.
The main buy index, an indicator of confidence in shopping for huge ticket objects, additionally rose 4 factors to minus 24, 11 factors increased than a yr in the past.
GfK consumer technique director Joe Staton stated: “The cost-of-living crisis has been part of our daily financial reality for a long time, with double-digit inflation and record high food prices.
“But despite those pressures, May sees an encouraging three-point uptick in consumer confidence.
“While Brits have little control over the general economy, it’s good to see further improvement in how people view their personal finances in the next 12 months with a robust five-point jump to minus 8.
“This measure most keenly reflects our hopes and fears for the coming year, and it underpins our ability to spend on goods and services that drive our economy.
“Of course, the headline score of minus 27 means we’re still deep in negative territory and a long way from any ‘sunny uplands’. However, 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.”
Linda Ellett, UK head of client markets, retail and leisure for KPMG, stated: “Consumer confidence continues to push back against heightened inflation and interest rates, but increases in the most significant of essential household costs, such as mortgage or rent, and also energy, continue to govern how consumers are feeling about their outlook for 2023.
“Essential costs also continue to dictate whether consumers need to take steps to save money elsewhere in their budget. For example, so far this year a third of consumers that KPMG surveyed say they have switched to cheaper retailers, while nearly 40% are buying more value or own-brand produce.
“Certainty about essential costs has and will continue to dictate savings and spending plans for the rest of 2023. One third of consumers that KPMG spoke to with savings say they are using them to help meet their essential costs. But among the remaining two thirds, appetite exists to make major purchases during the rest of this year.”