Period covered: May 24Published: May 30, 2024Read time: 1min

Consumer Sentiment Monitor

Consumer Sentiment Monitor - May 2024

Dr Kris Hamer | Director of Insight | British Retail Consortium

“In May, there was a notable increase in consumer optimism about the UK economy compared to recent months. The percentage of consumers expecting an improvement over the next three months rose by 7%, while those anticipating a worsening economic situation decreased by the same percentage. Younger consumers, particularly Gen Z and Millennials, remain the most optimistic groups, with favourable responses from these groups increasing by 6% compared to April.

Expectations regarding personal finances also saw an improvement in May, with a 2% increase in consumers who expect their financial situation to improve, and a 3% decline in those expecting their finances to worsen over the coming months. The overall perception of debt levels showed little change, although there was a slight decline, with 45% of consumers reporting some form of debt, down from 47% in the previous month.

This month, we also surveyed consumers about their recent visits to physical retail stores. The results revealed that one in five consumers have reduced their store visits over the past 3 months. The main reasons cited were a general decrease in purchasing, the convenience of online shopping, and the ease of price comparison online. This trend aligns with findings from our Footfall Monitor, which indicates a consistent decline in retail footfall, with May experiencing the steepest drop since March 2021.”