UK consumer confidence sees largest monthly gain in four years

(Sharecast News) - UK consumer confidence rose in May, according to the latest survey from YouGov and the Centre for Economics and Business Research (Cebr), as negative perceptions surrounding household finances eased.

The headline consumer confidence index rose to 104.9 from 102.4 in April, with the 2.6-point increase marking the largest monthly gain in sentiment since May 2021.

The gauge measuring consumers' opinions of the health of their household finances over the past 30 days jumped to 82.5 from 76.0. The confidence index about household finances over the coming 12 months rose to 82.7 from 77.0, snapping two straight monthyl declines.

However, both remained firmly in negative territory, represented by any figure below the 100-point mark.

Retrospective perceptions of business activity and job security declined over the month, though remained in positive territory, while the outlooks for both over the coming year improved, along with consumer confidence about future house price gains.

"May's increase in the Index is a welcome sign following two consecutive months of relatively stark falls," said the Cebr's managing economist Pushpin Singh.

"Notably, the improvement in perceptions of household finances comes amidst a lower-than-expected inflation reading for April, though the fact that both household finances measures remain in negative territory continues to underscore the underlying headwinds affecting the UK economy."