Consumer confidence edged up in May amid signs of de-escalation in the Middle East, according to the latest data published today (May 21), prompting calls for the government to “act now” to sustain the momentum.
According to BRC-Opinium data, consumer expectations over the next three months of the state of the economy improved at -48 in May, up from -53 in April.
Their personal financial situation improved to -16 in May, up from -21 in April while their personal spending on retail rose to +7 in May, up from +5 in April.
Their personal spending overall remained at +15 in May, the same as in April and their personal saving remained at -8 in May, the same as in April.
However, the survey further finds that more people believe that conflict in the Middle East could increase food prices.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Consumer confidence, while firmly negative, saw a slight lift in May following signs of de-escalation in the Middle East.
"Younger consumers drove this improvement in expectations for the economy and household finances, helped by rising real wages among this generation. But the outlook remains fragile: inflation is set to rise, and more than four in five people expect food prices to climb.”
“If Government wants to keep consumer confidence heading in the right direction, it must now make a choice: act now, or let these inflationary pressures spiral, pushing up prices for households.
"Energy prices are pushing up costs for retailers and their supply chains, with the government’s energy taxes and levies making up as much as 65% of business bills.
"Cutting these charges is the fastest way to ease inflation and support consumer confidence. Delay will only make the next cost of living squeeze harder for households.”