Shopping Is The Best Therapy: Consumer Confidence High Despite General Election

Consumer morale rose to -5 from -7 in April, despite predictions it would fall to -8. However, small business confidence has slumped

Shopping Is The Best Therapy: Consumer Confidence High Despite General Election

UK consumer confidence has hit high a four month high despite the political and economic uncertainty caused by the general election – according to a report by GfK.

The survey of 2,000 people between 1 May and 15 May has revealed consumer morale has risen to -5 from -7, despite some predictions it would fall to as low as -8.

Despite the optimism however, it’s suggested that most of the negative effects of last year’s vote to leave the European Union, such as a weakened pound and high energy costs, have yet to filter through to a majority of households.

Furthermore, another report from Lloyds Bank has suggested that small businesses are a lot less optimistic than their customers, with business confidence falling sharply in May to below its long run average – despite hitting a 17-month high the previous month.

A decline in manufacturers’ sentiment is touted as the main reason for this decline.

Joe Staton, head of market dynamics at GfK, said:

“Perhaps the real squeeze in living standards is yet to hit home. We haven’t seen any significant fall (in consumer confidence) of the kind we might expect during such periods of pre-election and pre-Brexit uncertainty.”

Helen Dickinson, BRC chief executive, said:

“We expect the general trend of inflation to be upwards over the course of the year, which will squeeze disposable income at a time when wage growth is slowing.”

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