MNI: UK May Consumer Confidence Skips Back To March High: GfK

--UK May GfK Consumer Conf Index -7 Vs -9 April

     LONDON (MNI) - UK consumer confidence wiped out all of April's loss in May,

reverting back to the the 12-month high set in March, a survey by GfK found.

     --CONFIDENCE JOINT-HIGHEST SINCE MAY 2017

     The GfK Consumer Confidence Index (CCI) rose by two points to -7 in May.

The result was driven by increases in all but one of the headline index's

contributing components, with weaker appetites for major purchases the only

blemish on the month. 

     Perceptions of households prospective personal finances rose by 4 points to

+8, six points higher than this time a year ago, while expectations of the

general economic situation over the next year were also a little better, up 3

points to -21, although still firmly below the neutral zero-mark. 

     --ECONOMIC PESSISM HOLDING BACK SENTIMENT 

     According to Joe Staton, Client Strategy Director at GfK, UK confidence is

being held back by households' anxiety over general economic picture, both past

and prospective. 

     "Consumers remain resolutely downbeat about the general state of the

economy. These negative economic scores are depressing the Overall Index and

preventing it from breaking out into positive territory. We have been at zero or

negative for 29 months now," said Staton. 

     --APPETITE FOR MAJOR PURCHASES REMAINS WEAK

     The major purchase indicator, measuring households' willingness purchase

discretionary or durable items, fell two points to +1 to stand well below its

year-ago level (+9). 

     Intentions to save did fall on the month but remained  well above zero,

down three points to +7, having sat in double-figure territory for the past two

months.    

     "With UK retail sales falling at their sharpest rate since the mid-90s,

tough trading conditions for Britain's hard-pressed retail sector continue to

take their toll. Shoppers are still not showing signs of a willingness to

splash-the-cash," Staton added. 

     The UK Consumer Confidence Survey from GfK was conducted amongst a sample

of 2006 individuals aged 16+, carried out between May 1 and May 15, on behalf of

the European Commission.

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

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