Published on May 24th, 2021 | by The GC Team0
Consumers are getting their mojo back
Consumer confidence has bounced back to its pre-lockdown figure, with the easing of COVID-19 restrictions regaining all ground lost due to the pandemic.
GfK’s Consumer Confidence Index increased six points to -9 in May, with the general economic outlook and that for personal finances over the next 12 months both in positive territory.
The measure for the economy in the next year recorded a huge 15-point jump, and since January has leapt from -44 to +4.
Joe Staton, Client Strategy Director for GfK, said the findings reflect April’s “feelgood” reopening of outdoor pubs, shops, gyms and hairdressers, combined with continuing vaccination success, and don’t yet include the possible extra boost if green-list vacation opportunities are announced.
The forecast for personal finances over the next 12 months is the same as last month at +10: 19 points higher than at this time last year.
The Major Purchase Index, which measures consumers’ willingness to spend, increased by five points to -7 and is 40 points higher than it was in May last year.
Staton commented that more consumers are “seizing the opportunity to splash the ‘accidental savings’” that some have collected.
“Now really is a good time to buy,” he added. “Growing confidence is fuelling the economy and only a reversal to lockdown can dampen this solid momentum.”