UK consumer confidence levels hold steady

The latest report on consumer confidence from research firm GfK NOP shows that confidence in the economy held steady in May. The GfK NOP Consumer Confidence Index stayed level at -27, two points higher than the level seen this time last year.

Confidence in personal finances over the next 12 months rose two points in May to -1, two points higher than in April and three points higher than this time last year. But expectations for the general economy over the next 12 months fell, dropping to -16 compared with -15 in April 2009 but still significantly better than the level of -32 seen in May 2008.

Racheal Joy, in the Consumer Confidence team at GfK NOP, said:

“After rising steadily since February, the GfK NOP Consumer Confidence index has held steady at -27 this month. This is still very low historically, but is at least standing firm in the face of continuing depressed markets and May’s warnings of a possible pandemic. Worries about job losses and harder times are still very much alive – recent GfK NOP research shows that a quarter of the UK are concerned they may lose their job, and nearly half said they have concerns about maintaining their lifestyle – but the UK appears to be stoical about the continuing economic situation.”

The GfK NOP major purchases measure remained level, with a score of -22, but a full ten points higher than this time last year. Encouragingly, the ‘now is a good time to save’ Index, rose one point to -16, but is still a massive forty-one points lower than May ’08, largely due to cuts in the Bank of England base rate to 0.5%.

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