Consumer confidence jumps unexpectedly in May
The consumer confidence index for the UK rose unexpectedly to -21 points in May, according to GfK NOP. This was a ten point rise from the month before and the highest increase since May 1993.
However, Gfk said it viewed the rise with some caution as it was just one month’s figure which came from a very low level. The survey was conducted among 2,005 Britons between 6 and 15 May.
Nick Moon, managing director of GfK NOP Social Research, commented:
“We have seen an almost unprecedented jump in consumer confidence this month. May’s figures show the second largest rise ever – only May 1993 was higher, when it improved by 12 points. In the 449 months that the index has been running, single-month movement on this scale – either up or down – has only occurred on ten occasions.”
He added: “But before the businesses celebrate, it should be pointed out that this is just one month’s figure and it is far too early to know whether this could be the start of an upward trend. We are improving from a rock bottom position and consumer confidence is still deeply in the negative. So, whether the current spring in consumers’ step is due to the feel-good factor of the Royal wedding and a double-whammy of sunny bank holidays, or to the recent let-up in negative reporting about the state of the economy, we are not out of the woods.”
GfK said the gain in confidence could partly be due to a “feel-good factor” following the two four-day holiday weekends and Royal Wedding, as well as to the warm weather. However, analysts have warned against reading too much into the figures arguing that the UK could still be facing a tough economic outlook for the year ahead.
