UK confidence has been on a rise since the past four months, rising to its highest level in May, since Russia’s full- scale invasion of Ukraine. According to research group GfK, its consumer confidence index rose by three points to minus 27, showing gradual improvement since it hit a low of minus 45 in January.
The latest reading is the highest recorded since February 2022, just before the Russian invasion sent the energy prices soaring. Briton’s expectations for the general economy and their personal finances rose sharply by four and five points respectively, from last month.
The outlook for the UK economy over the next 12 months is improving, according to most economists. Official data for April is due to come out soon and is expected to show a sharp drop in inflation as energy prices continue to fall from their peak. Meanwhile, the labour market remains strong, helping to support household incomes.