UK consumers upbeat about spending prospects

Bloomberg

British consumers are feeling more upbeat about their spending prospects, though they’re still worried about the economic outlook, according to GfK.
An index of confidence increased by 2 points in May to minus 7, the market-research firm said in a report published on May 31, with consumers declaring themselves more optimistic about their personal financial situation. They are still downbeat about the general state of the economy, keeping the index in negative territory. A snow-blighted first quarter saw economic growth nearly grind to a halt, but there are signs of a recovery in consumer spending. Retail sales rebounded more than expected in April as the weather improved, the Office for National Statistics said last week.
Britons are also just emerging from a year of shrinking real incomes after the vote to leave the European Union battered the pound and stoked inflation.
“UK consumers are feeling more upbeat this month. However, consumers remain resolutely downbeat about the general state of the economy,” said Joe Staton, client strategy director at GfK.
“When will the strong jobs market and rising real incomes, coupled with low interest rates and low levels of headline inflation, have an impact?”
A separate report published by Lloyds Bank showed that firms
are feeling upbeat about their prospects. Overall business confidence increased by 3 points to 35 percent, the strongest since January and above the survey’s long-term average. Confidence in the retail sector also jumped.
“After a sluggish start to the year for retail, many firms appear to have turned the corner with confidence,” said Scott Barton, a managing director at Lloyds. “Retailers across the country have a way to go but it appears their outlook for the future is vastly improving.”