Consumer confidence in the UK saw a modest uptick in April following a sluggish start to the year. According to the latest data from the GfK Consumer Confidence Index, optimism among consumers regarding their personal finances improved slightly, buoyed by a decline in inflation. The index rose by two points to -19, showing a positive shift from the previous months of -21. Alongside this, the major purchase index also saw a strengthening, up by 2 points to -25.
The CBI Distributive Trades Survey indicated a stabilisation of UK retail sales in March after 10 months of decline, with sales being broadly flat. While the figures showed a slight positive trend, retailers remain cautious, anticipating a decline in sales next month due to the early Easter impact.
Looking at the specifics, the index measuring consumers’ confidence in their personal financial situation over the past 12 months increased by two points to -11, while confidence in the next 12 months remained flat at 2, showing an improvement from the previous year. Consumer confidence in the general economic situation also saw an increase, rising by four points to -41 for the past 12 months and by two points to -21 for the next 12 months.
Despite these improvements, challenges persist, with consumers and retailers alike facing financial pressures. Consumers are cautious about discretionary spending, while retailers grapple with declining sales volumes and orders. The shift towards non-cash payments continues, posing both opportunities and challenges for businesses.
Looking ahead, while there are signs of improvement in consumer confidence and retail sales stabilization, caution prevails amidst ongoing economic and fiscal challenges. Retailers are hopeful for support amidst rising costs, while the landscape of online transactions undergoes significant transformation with emerging payment formats gaining traction.
The information provided in this article is for informational purposes only and should not be construed as financial advice. Readers are encouraged to conduct their own research and consult with financial professionals before making any investment decisions.
