Confidence index at the highest level since the beginning of Russia’s war in Ukraine
UK consumer confidence has improved for the fourth consecutive month in May, research group GfK has reported.
Its Consumer Confidence Index rose by three points this month to -27, the highest it has been since February 2022, when prices of energy and other commodities soared due to Russia’s invasion of Ukraine.
“The headline score of -27 means we’re still deep in negative territory and a long way from any ‘sunny uplands’,” Joe Staton, client strategy director at GfK, said. “However, the overall trajectory this year is positive and might reflect a stronger underlying financial picture across the UK than many would think.”
The index continues to improve from the low of -45 recorded in January, as the UK economy – which barely avoided a recession – slowly recovers from the effects of last year’s political turmoil and the cost-of-living crisis.
The rapid recovery in UK household confidence extended into a fourth month in May in the face of double-digit inflation https://t.co/xrvarxh34R
— Bloomberg UK (@BloombergUK) May 19, 2023
The latest GfK Consumer Confidence Index also found that confidence in the economic outlook rose by four points, improving to its highest level since late 2021. Expectations over future personal finances also increased by five points, recording a 16-month high.
The Intermediary Mortgage Lenders Association also recently reported that confidence in the mortgage market recovered in the first quarter of 2023, with 79% of brokers upbeat about the outlook for the industry.
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