Consumer sentiment at two year high
Lloyds attributed the improving sentiment to a growing confidence in the current economic situation.
Patrick Foley, chief economist at Lloyds TSB, said: “The recent reports of a return to growth for the UK economy are being reflected in improved consumer sentiment which is good news as better confidence will help to sustain the economic recovery.
“A gradual easing in the squeeze on consumers from essential spending is helping, although with energy bills increasing again, the improvement in spending power remains modest.”
Of those surveyed 54% stated they are ‘excellent’, ‘very good’ or a ‘somewhat good’ financial situation as compared to 53% in April.
However, that leaves 46% across the UK still feeling their own financial situation is ‘not good’ or ‘not at all good’.
The younger age groups continue to have the most positive outlook on their finances with 61% of 25 to 34 year olds stating they are ‘excellent’, ‘very good’ or ‘somewhat good’.
Lloyds said that whilst there is some way to go optimism towards the housing market grew in May with 29% stating that it is ‘excellent’, ‘very good’ or ‘somewhat good’ (28% in April), compared with 71% who believe it is ‘not good’ or ‘not at all good’ (72% in April).
Pessimism towards the housing market is greatest amongst the 45 and over age group, especially the 55-64 year olds, of whom 79% state they feel it is ‘not good’ or ‘not good at all’.
However sentiment regarding employment continued to dip this month with 87% describing it as ‘not good’ or ‘not at all good’.