GfK’s consumer confidence index fell two points to -40 in May, the lowest score since records began in 1974.
Four metrics were down from the April 22 announcement – including the Major Buys Index, which fell three points to -35 in May, down 28 points year-on-year – and one was up .
Joe Staton, Director of Client Strategy, GfKsays: “The GfK Consumer Confidence Barometer recorded an overall score of -40 in May, the worst since our records began in 1974. This comes as unemployment in the UK hits its lowest level in 50 years , with job vacancies outnumbering first-time job seekers, and inflation peaking at its highest level in 40 years, driven by soaring food and fuel bills.
“The May result is one point lower than the previous record set in July 2008, when the overall score plunged to -39. This means that consumer confidence is now weaker than in the darkest days of the crisis. global banking, the impact of Brexit on the economy, or the Covid shutdown.
“Consumer pessimism is most evident in the depressed general economy sub-measures, at -63 for the past year and -56 for the year ahead. The Major Buys Index declined for each of the past six months and is now at -35, reflecting the latest dismal retail sales figures.Even the Bank of England is pessimistic, with Governor Andrew Bailey offering no hope of fighting inflation this week. Consumer confidence is bleak and nothing on the economic horizon shows reason for optimism anytime soon.