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23 May 2025

Daily Newsletter

UK consumer confidence up in May as trade tensions ease

UK consumer sentiment recovered slightly in May as economic growth gained momentum, according to British Retail Consortium (BRC) data.

Jangoulun Singsit May 23 2025

This marked an improvement from the previous month's -48 but still indicated a negative outlook compared to March's -35.

The BRC-Opinium consumer sentiment monitor indicated retail spending was flat with the index reaching 0 in May, a slight decrease from +3 in April.

Despite this, the overall personal expenditure remained steady at +10 in May, mirroring April's figures.

Projections for fashion and clothing spending revealed a slight dip to -16 in May from April's -15.

Recent data from the BRC-KPMG Retail Sales Monitor also highlighted a surge in UK fashion sales during April 2025, attributed to consumers refreshing their wardrobes for the warmer season after a period of subdued growth. A significant 6.1% year-over-year rise was observed in UK non-food sales, which encompasses clothing.

While consumer confidence showed signs of improvement alongside the UK's economic progress and diminishing geopolitical strife, it continued to trail behind the levels observed in the previous year. The over-60 demographic exhibited the most notable enhancement in sentiment, rising nearly 20 points, yet remained the most pessimistic group.

British Retail Consortium CEO Helen Dickinson said: "Only weeks ago, consumers were facing uncertainty arising from President Trump’s announcement of eye-watering tariffs on many countries. Fast forward to today, the UK has trade deals with some of the world’s largest economies.

“While agreements with the US and India may have helped this month’s boost in consumer confidence, it is hoped the latest EU deal will drive further confidence in the outlook for the economy and personal finances. There is more the UK can do to encourage spending and trade: reintroducing a tax-free shopping scheme would attract more high value shoppers from abroad, benefitting retail, hospitality, and leisure, and creating employment opportunities and boosting economic growth.”

The sentiment regarding personal finances also displayed some positivity, stabilising at -12 in May.

However, there was a minor downturn in personal savings sentiment, slipping to -5 in May from April's -4.

The survey conducted by Opinium on behalf of BRC included 2,000 UK adults and employed a weighted methodology to present net scores that more accurately reflect overall sentiment.

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