Proactive Investors - Consumer confidence indicators ticked up this month, driven by a better outlook for personal finances, according to GfK.
GfK’s Consumer Confidence Index improved by two points to -17 in May. Four measures were up and one was down versus last month’s announcement. The personal finance measure (next 12 months) rose five points and our views on the economy grew four https://t.co/kQBZztswD7 pic.twitter.com/rrYlrD0j6F— GfK - An NIQ Company (@GfK) May 24, 2024
The Consumer Confidence Index climbed by two points in May to minus-17, the firm said on Friday.
This was as forecasts for personal finances over the coming year rose strongly by five points to positive seven.
“With the latest drop in headline inflation and the prospect of interest rate cuts in due course, the trend is certainly positive,” GfK client strategy director Joe Staton said.
“All in all, consumers are clearly sensing that conditions are improving.”
He did highlight a reduction in GfK’s major purchase measure, however, reflecting reduced confidence in buying big-ticket items.
“With costs still heightened and some people still having to adjust to higher mortgage costs, the challenge for consumer spending is whether any future lowering of costs ends up being saved rather than spent,” KPMG’s Linda Ellet added.