LONDON (Reuters) – British households turned much less assured in May, reflecting uncertainty concerning the economic system’s prospects forward of Brexit subsequent yr, in response to a survey printed on Friday.
YouGov, a polling agency, and the Centre for Economics and Business Research, a consultancy, stated their client confidence index fell to 108.four, down 1.four factors from April.
“If confidence doesn’t recover soon it could damage second-quarter growth prospects, which is especially undesirable given the weak performance at the start of the year,” Nina Skero, Head of Macroeconomics at CEBR, stated.
Britain’s economic system slowed sharply between January and March, damage by heavy snowfall and by the squeeze on client spending from excessive inflation and weak wage progress for a lot of the previous yr.
The YouGov confidence index stays under the extent of 113.6 seen in May 2016, shortly earlier than the EU referendum.
The job safety index for the approaching yr fell to 109.5 from 113.5 in April, its largest month-to-month fall since July 2013, regardless of the unemployment fee sitting at its lowest degree because the 1970s.
“Consumers are increasingly aware that the UK’s economic prospects have soured slightly of late and that this may have implications for their careers in the year ahead,” stated Christian Jaccarini, economist on the CEBR.
However, family funds improved for the fifth month in a row and expectations for the yr forward have been their highest since September 2016. Britain’s inflation fee has fallen in current months whereas wage progress has picked up.
Reporting by Ana de Liz; Editing by William Schomberg