Despite an increase in confidence, worries about the wider economy cancel out positive attitudes towards personal finance

Consumer confidence increased in May but was still in negative territory, according to an index.

GfK’s Consumer Confidence Index rose two points this month, but positive feelings about personal finances were not enough to cancel out concerns about the wider economy, keeping the overall score at minus seven.

Joe Staton, client strategy director at GfK, said consumers remain “resolutely downbeat about the general state of the economy”.

He added: “These negative economic scores are depressing the overall index and preventing it from breaking out into positive territory.

“We have been at zero or negative for 29 months now. When will the strong jobs market and rising real incomes, coupled with ongoing low interest rates and low levels of headline inflation, have an impact?

“With UK retail sales falling at their sharpest rate since the mid-90s, tough trading conditions for Britain’s hard-pressed retail sector continue to take their toll.”

WESTCLIFF, UNITED KINGDOM – FEBRUARY 28: A general view of a closed Maplin electronics store on February 28, 2018 in Wescliff, England. Electricals retailer Maplin has today collapsed into administration with 2,500 jobs at risk, the decision was taken after the company failed to raise finances through a rescue deal. (Photo by John Keeble/Getty Images)

The index, which relies on a sample of 2,001 people with a breakdown representative of the UK population, found that confidence in personal finance for the year ahead increased four points to eight – four points higher than in May last year.

The measure for the general economic situation of the country during the last 12 months also increased, by five points to minus 24, but remains four points lower than May last year.

Expectations for the general economic situation over the next year have risen three points to minus 21 – the same level as last May.

A two point drop in the major purchase index suggests people are putting big item purchases on hold.

Source: Sky news
Nick Moore : Blogger : Dabaiba News

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