UK consumer confidence hits record low in May 2023: GfK

The index, which provides an overall measure of consumer sentiment, reveals changes in consumer attitudes towards personal finances, general economic conditions, and major purchases. In comparison to the April 22, 2023, announcement, four measures were down, while one increased.

Specifically, the index measuring changes in personal finances over the last 12 months decreased three points to minus 22, reflecting a significant downturn, 18 points worse than in May 2021, as per GfK.

However, the forecast for personal finances over the next 12 months showed a slight improvement, increasing one point to minus 25, although it still stands at a worrying 35 points lower than this time last year.

The measure for the general economic situation of the country during the last 12 months deteriorated further, down three points at minus 63, marking a decrease of 15 points from May 2021.

Expectations for the general economic situation over the coming 12 months have also dropped by one point to minus 56, a significant decrease of 60 points lower than May 2021.

On the purchasing front, the Major Purchase Index, which assesses the climate for making major purchases, decreased three points to minus 35 in May, representing a sharp 28 points drop compared to the same month last year.

Meanwhile, the Savings Index, which estimates changes in consumers' savings intentions, held steady, remaining the same as last month at 10. However, this figure is 12 points lower than this time last year, indicating a less favourable climate for savings.

Fibre2Fashion News Desk (DP)