"The headline measure for the economy held at -53, unchanged from March and the lowest level on record, signalling deep pessimism about the UK's economic outlook."
"Despite this bleak sentiment, consumer behaviour tells a more mixed story. Retail spending edged up to +5 in April, from +2 in March, while overall personal spending rose to +15, compared with +13 a month earlier."
"Economists say the divergence between confidence and spending could prove temporary, warning that persistently weak sentiment may eventually feed through into reduced consumption if financial pressures intensify."
"Helen Dickinson, Chief Executive of the British Retail Consortium, said: 'The Middle East conflict continues to stoke consumer anxiety around inflation and the cost of living.'"
In April, confidence in the UK economy remained at a record low of -53, indicating deep pessimism. Households reported worsening finances, with the personal financial situation index dropping to -21. Despite this, retail spending increased to +5, and overall personal spending rose to +15. Savings are under pressure, with the personal savings index at -8. Economists warn that the gap between confidence and spending may not last, as weak sentiment could lead to reduced consumption. Consumer anxiety is heightened by geopolitical tensions and rising costs.
Read at London Business News | Londonlovesbusiness.com
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