Consumer confidence falls again (-0.6) – the index has now spent half a year in decline
Household finance measures for the past 30 days (+2.1) and next 12 months (+3.9) creep upwards following four months of rapid deterioration
Retrospective (-3.8) and forward-looking (-6.5) home value measures deteriorate amid reports of market slowdown
Job security and business activity measures remain stagnant
New analysis from YouGov and the Centre for Economics and Business Research (Cebr) reveals that household finance measures saw a slight recovery in May 2022 – but falling home value metrics have dragged the overall consumer confidence index down for the sixth month in a row.
Following months of decline, members of the public were more positive about their finances in May 2022. Retrospective measures (which cover the past 30 days) saw an increase of 2.1 points, rising to 58.8, while outlook (covering the next 12 months) jumped by 3.9 points to 52.2.
Any improvements to these metrics have to be viewed in the context of the year’s record-breaking lows. The cost-of-living crisis has wreaked havoc on Britons’ optimism around their household finances, and scores for both measures remain resoundingly negative. With the energy cap set to rise again in October, this month’s results could represent a moment of calm in an ongoing storm.
If there is good news for households this month, it is accompanied by rather worse news for homeowners. Confidence in short-term house prices fell to 129.7 (-3.8), while outlook plummeted to 130.9 (-6.5). Contrasting with Britons’ perceptions of their household finances this month, it’s a case of two healthy measures enduring their first proper setback in some time – while remaining firmly positive overall.
Among workers, business activity metrics remained broadly stagnant – inching up to 112.3 (+0.4) for the past 30 days and 121.7 (+0.6) for the next 12 months – while the job security index saw minor losses: decreasing to 93.1 for the short-term measure (-1.0) and -0.8 for the year ahead (119.4).