Consumer Confidence has reached its highest level in almost two-and-a-half years, according to GFK’s latest Consumer Confidence Index.
The report found that in May Consumer Confidence rose by two points to -17, its highest reading since December 2021.
“All in all, consumers are clearly sensing that conditions are improving. This good result anticipates further growth in confidence in the months to come,” said Joe Staton, Client Strategy Director at GfK.
“With the latest drop in headline inflation and the prospect of interest rate cuts in due course, the trend is certainly positive after a long period of stasis.”
Inflation has also fallen to its lowest rate since mid-2021 at 2.3% in April, although some economists expected a smaller drop.
April also brought a nearly 10% increase in Britain’s minimum wage as well as a 2% point cut in the rate of national insurance contributions paid by employees.
And with a summer of sport almost upon us, this could be the start to economic recovery – we shall have to wait and see.
