UK consumer confidence continues to slip in May: survey

Source:Xinhua Published: 2020/6/6 8:50:57

A man buys a coffee at a coffee shop in London, Britain, May 17, 2020. Some restaurants, cafes and other catering shops in Britain have gradually resumed business with preventive measures like keeping social distancing after the British Government released a phased easing strategy from the novel coronavirus lockdown. (Photo by Tim Ireland/Xinhua)


 
British consumer confidence deteriorated in late May despite the country starting to further ease lockdown since mid-May, a survey from polling firm GfK said Friday.

The GfK released its third COVID-19 flash report using data gathered between May 20 and May 26, which showed that the long-running consumer confidence index has decreased by two points over the past two weeks.

Consumer confidence index dropped across key measures to -36, just three points shy of the historic low of -39 in July 2008, the survey said.

"Against a backdrop of falling house prices, soaring jobless claims, and with no sign of a rapid V-shaped bounce-back on the cards, consumers remain pessimistic about the state of their finances and the wider economic picture for the year to come," said Joe Staton, GfK's client strategy director.

However, the survey found latent demand among shoppers for big-ticket items while most outlets remain closed. The only bright spark is the Major Purchase Index with a six-point fillip, the survey said.

"As the lockdown eases, it will be interesting to see just how the consumer appetite for spending returns in a world of socially-distanced shopping and the seismic shift to online retailing -- alongside worries of a fresh spike in COVID-19 cases as relaxations increase," Staton said.

According to the government's three-step plan to lift lockdown, from May 13, workers who are unable to work from home can travel to work if their workplace is open. Outdoor markets and car showrooms are allowed to reopen from June 1 in England and all non-essential retailers will be able to reopen in England from June 15.

The government has published new guidance for the retail sector to meet the necessary social distancing and hygiene standards.

Posted in: EUROPE

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