LONDON (MNI) – Consumer confidence rose unexpectedly in May but
failed to break out of the tight range it has held for 11 months,
according to the latest survey from GfK/NOP.
The GfK/NOP Consumer Confidence Index rose to -29 from April’s -31,
narrowing the gap with the five-year average of -23. The index has held
in a -29 to -33 range since July last year, after a surge to -21 in May
last year on the back of fine weather and extended national holidays.
A Market News International/Need to Know News poll of forecasters
predicted a slight dip in the May reading to -32.
Two sub-measures recorded rises, two fell and one was unchanged
with all indices lower than this time last year.
The May survey’s forward looking indicators picked up, with
consumers more upbeat about their financial prospects and the economic
outlook over the next 12 months.
Of the two backward looking measures, the index measuring personal
finances during the past twelve months was unchanged at -23, five points
below May 2011.
The index measuring the general economic situation over the last
twelve months fell one point to -58.
The climate for major purchases index fell two points to -32.
The forward looking measures were rosier, with the index measuring
personal finances over the next twelve months and the index measuring
the general economic situation over the next twelve months both rising,
to -9 and -26 respectively.
Back in May last year the forward looking personal finances index
was -3 and th forward-looking general economic situation index -15.
Nick Moon, Managing Director of Social Research at GfK, said that
the main driver for the surprising rise was “borne entirely out of how
people view the future rather than how they feel looking back at the
last year.”
The savings index, which measures whether it is a good time to save
or not, increased to points to -16.
-Reporting: Sanjukta Moorthy, at Need To Know News, on Tel: +44 207
862 7485
London Newsroom: 44207 862 7491; email: drobinson@marketnews.com
[TOPICS: M$B$$$,MABDS$]
