The GfK consumer sentiment went up to -10 in May from -13 in April, painting a better picture about UK consumers. Not only did this figure beat economist expectations in May, it is also the highest level since September 2018.
An improvement in personal finances among British consumers over high levels of employment and rising wage growth has helped boost the consumer sentiment in the UK. However, things don’t appear so optimistic for the overall economy in the coming months due to Brexit uncertainties.
GfK stated that further gains in the consumer sentiment are expected to remain limited in the coming months because of the lack of clarity over the Brexit situation. Llyods Bank’s monthly business barometer also fell to +10 in May from +14 April, reflecting the pessimism in business morale in the UK.