UK consumer confidence in May rose to its highest level in a year, with a record number of households expecting their finances to improve in the coming year.
Consumer confidence, which reflects how optimistic, pessimistic or neutral individuals are regarding the state of the economy and their personal financial situation, is closely monitored by businesses and government agencies.
Research compiled by YouGov and the Centre for Economics and Business Research (Cebr) found that consumer confidence increased from 113.6 in April to 115.1 this month.
Stephen Harmston, head of YouGov reports, said:
“With the election now over, consumer confidence has strengthened and is now close to where it was before the financial crisis … people are now increasingly optimistic about what will happen over the next year.”
Twelve per cent of respondents said their household financial situations have improved in the last month, while six-teen per cent said their situation had worsened. The survey also revealed that 26 per cent expect their household finances to improve over the next 12 months.
“This rally is set against a backdrop of improving employment figures, ‘good’ deflation and increasing wages,” said Scott Corfe, associate director at Cebr. “Although the latest GDP figures were softer than expcted, it seems likely they will be revised up giving an overall economic picture that is relatively buoyant.”
Britons more willing to spend money
Nielsen revealed yesterday that the number of British consumers willing to spend money is at a record high and that more people are feeling more upbeat about their job prospects and personal finances.