With the May GfK NOP consumer confidence barometer straddling the general election and with uncertainty about future tax and spending policies a feature of the campaign, consumer confidence slipped in May, down 2 points to –18. This is the weakest level in 2010, and down 9 points on a year ago.
The main weakness in confidence is in the future measures of personal finances and the general economic situation. The wave of optimism that swept through the country from late summer appears to have broken.
Spending measures continue to be weak, with both savings measures of the climate and of the likelihood of saving showing slight improvement.
With inflation expectations at a 21-month high and job worries growing in May, the new coalition government face a tough challenge in boosting the mood of consumers which may turn more pessimistic as next month’s emergency Budget is unveiled.
The May UK Consumer Confidence Monitor will be published on June 16th. To find out how you can also have an informed view of the consumer mood contact firstname.lastname@example.org or ring 07740027968 / 02089447510