United Kingdom: Consumer sentiment brightens in May
May 31, 2019
The GfK consumer confidence indicator registered minus 10 points in May, up from April’s minus 13. However, the index remained in negative territory, where it has been since April 2016, highlighting that consumers are broadly pessimistic.
May’s reading was underpinned by more positive sentiment regarding personal finances and the general economic situation. Consumers also grew more willing to make major purchases.
According to Joe Staton, client strategy director at GfK: "unemployment is at multi-decade lows and the employment rate is at a record level, perhaps this sunnier picture is to be expected? But before we see a leap back into the brighter positive numbers last seen in January 2016, consumers will need to be convinced […] that Brexit’s murkiness has finally come to an end. And there are potentially dark clouds on the horizon.”
UK Private Consumption Forecast
FocusEconomics Consensus Forecast panelists expect private consumption to expand 1.5% in 2019 and 1.4% in 2020.
Author: Oliver Reynolds, Economist