Consumer confidence in the UK saw a notable uplift in May 2025, according to the latest BRC-Opinium data, as improving trade relations and economic stability buoyed public sentiment.
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The data showed that consumer expectations for the overall state of the economy improved significantly, rising to -36 in May from -48 in April. Confidence in personal financial situations also grew, increasing from -16 to -12. However, expectations for personal spending on retail dipped slightly to 0, down from +3 in April, while overall personal spending remained steady at +10. Personal saving expectations fell marginally to -5, down from -4.
'Consumer confidence improved as UK economic growth picked up and geopolitical tensions eased as the US-China trade war began to cool, however, it remains far below levels seen last year,' the report noted.
Older consumers led the shift in sentiment, with the over-60s seeing the greatest increase in optimism, up by nearly 20 points. Despite this, they remained the most pessimistic age group. This demographic shift may be attributed to 'the stock market recovery after the turbulence caused by a slew of US tariff announcements.'
While overall spending expectations held stable for the third consecutive month, the modest dip in retail spend suggests consumers remain cautious. Nevertheless, the broader outlook appears more hopeful.
'Only weeks ago, consumers were facing uncertainty arising from President Trump's announcement of eye-watering tariffs on many countries,' the report highlighted. 'Fast forward to today, the UK has trade deals with some of the world's largest economies.'
The conclusion of trade agreements with both the United States and India was seen as a key contributor to the improvement in public sentiment. Furthermore, optimism was bolstered by the announcement of a new deal with the European Union, which is expected to support confidence in both the economy and personal finances.
Helen Dickinson, Chief Executive of the British Retail Consortium (BRC), commented on the findings, noting potential policy measures to further stimulate growth:
'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 latest figures present a cautiously optimistic picture of the UK's retail and economic environment as it navigates global uncertainties and post-Brexit trade relationships. With international partnerships now in place and inflation pressures easing, the hope is that continued policy support will sustain and strengthen this upward momentum in consumer confidence.
More information:
British Retail Consortium (BRC)
info@brc.org.uk
www.brc.org.uk