United Kingdom: Consumers remains deeply pessimistic in May
The GfK consumer confidence indicator registered minus 34 in May, unchanged from April’s reading and marking the joint-lowest rate since 2009.
Consumers remained deeply pessimistic regarding the general economic outlook and their willingness to make major purchases, but were less gloomy about their future personal financial situation.
According to Joe Staton, GfK’s client strategy director:
“With unemployment claims rising by the highest rate on record and warnings of a recession and possible tax hikes, the damage done by the coronavirus pandemic to the UK economic landscape has been laid bare. The lower scores we have registered during May for perceptions of the general economic situation reflect this, and the Government is dampening down expectations of an immediate economic bounce back. […] Confidence will remain fragile for some time and the possibility of another spike in Covid-19 cases as we adapt to the ‘new normal’ is an obvious danger.”