May has shown another strong improvement for the UK Consumer Confidence Index and an increase of +2. See our planning experts breakdown of what's happening, what to consider and what this means next.
- The latest drop in headline inflation and the prospect of interest rate cuts in due course, the trend is certainly positive.
- Future outlook strengthens with five-point jump for personal finances and four-point jump for UK economy.
- The?Major Purchase Index is down one point to -26; this is two points lower than this month last year. Further highlighting while a more positive month, cost-of-living remains a factor.
- Further highlighted by the Savings Index having increased one point to +27 in May; this is eight points higher than this time last year.
- Consumer confidence usually increases right before an election and drops by about the same amount directly after. The drop after the election is due to the political environment, rather than the condition of the economy.
- Consumer confidence is on the rise with economists forecasting a continued uptick, with prospect of interest cuts and drop in headline inflation.
- Consumer confidence is always based on a previous view, but aims to give an indication of consumer spending habits.
- Cost-of-living continues to bubble away in the background, affecting audiences of lower social grade more, and from an age perspective the 18–24-year-olds.
- Audiences across majority of categories are in decline, due to a desire to save. In particular for larger ticketed items. Thus, a need to ensure a clear strategy is in place to reach & convert new audiences as part of an overarching marketing strategy. As highlighted by PWCs Spring report:
- Value exchange messaging remains key in driving conversion.
For more insights and planning advice around the cost-of-living crisis, reach out to our team of experts on [email protected]
