Food and Beverage Business
Consumer

Despite high food prices, consumer confidence continues to rise.

Despite high food prices, consumer confidence continues to rise. confidence, consumer, Consumer confidence, continues, food, High, high food prices, prices, Rise Food and Beverage Business

According to market research company GfK, the UK’s consumer confidence has increased for the fourth consecutive month. The latest rise, which is measured on a -100 to +100 scale, is three points to minus 27, following a six-point increase in the previous month. In January, the index stood at minus 45.

Client strategy director, Joe Staton, commented on the recent data, saying, “Despite the cost-of-living crisis being part of our daily financial reality for quite some time, May sees an encouraging uptick in consumer confidence. This is the fourth monthly increase in a row, demonstrating a stronger underlying financial picture across the UK than many would anticipate.”

Staton went on to say that while it was good to see further improvement in how individuals feel about their personal finances in the next 12 months with a five-point jump to -8, the headline score of -27 still indicated that the country was far from any “sunny uplands.”

Linda Ellett, head of consumer markets, retail, and leisure for KPMG, added that certainty about essential costs has and will continue to dictate savings and spending plans for the rest of 2023.

She stated, “Essential costs such as mortgage or rent and energy continue to play a crucial role in how consumers view their outlook for the coming year. While consumer confidence continues to push back against heightened inflation and interest rates, it’s no surprise that essential costs continue to govern how consumers are feeling about their financial outlook.”

Ellett continued, “One third of consumers that KPMG spoke to with savings say they are using them to meet their essential costs. But among the remaining two-thirds, there’s an appetite to make major purchases during the rest of this year.”

It remains evident that Brits know they have little control over the general economy, but recent data demonstrates a positive trend, which could underpin the ability to spend on goods and services that drive the economy. It is vital to keep an eye on essential costs that will continue to play a crucial role in shaping consumer confidence throughout 2023.

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