UK consumer confidence showed signs of improvement in May, according to data from BRC-Opinium. Expectations for the domestic economy over the next three months rose to -36, from -48 in April. Consumers’ perceptions of their financial situation also improved, from -16 to -12. However, retail spending intentions fell from +3 to 0, while overall spending remained stable at +10. Saving intentions also fell slightly, from -4 to -5.
According to Helen Dickinson, CEO of the British Retail Consortium, this recovery is attributable to a combination of factors: the recovery of economic growth, the easing of geopolitical tensions and the easing of the trade war between the United States and China. The optimism of the over-60s was surprising, growing by almost 20 points, although they remain the most pessimistic group.
The trade deal with the European Union and those already in place with the United States and India have helped improve sentiment. However, Dickinson stresses that to further stimulate consumption, it is essential to reintroduce the tax-free shopping regime for tourists, so as to strengthen the retail, hospitality and leisure sectors, generating employment and economic growth.
