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UK consumer sentiment worsened at a slower pace in May, data published by S&P Global showed Monday. The S&P Global UK consumer sentiment index rose to 45.2 points in May from 44.5 in April. Getting closer to the neutral 50-point mark separating improvement from deterioration, it indicates the pace of deterioration slowed in May. Notably, the labour market sentiment index improved to a 5-month high of 52.9 points in May from 52.7 in April, indicating the pace of improvement sped up in May. Under this, the subsector of job security grew to 50.9 points in May from a neutral 50.0 in April. Maryam Baluch, economist at S&P Global Market Intelligence, said: ‘The main drag on sentiment instead came from consumer spending behaviour. Households were cautious with their spending due to limited cash availability, which hindered major purchases. Still, rising incomes eased some financial strain. In fact, households reported a softer deterioration in their current financial well-being and were less downbeat about their financial prospects.’ She added: ‘A change in May is that, on balance, households adopted a dovish view on central bank policy. This marks the first time since February that more households expect interest rate cuts rather than an increase. It is hoped additional easing of monetary policy will stimulate household expenditure and alleviate difficulties in obtaining loans, with many big lenders already aligning their products with the latest policy adjustments.’ The survey is based on monthly responses from approximately 1,500 individuals in the UK, with data collected by Ipsos MORI from its panel of respondents aged 18-64. The responses were collected between May 8 and 12. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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