Consumer confidence is on the rise so it seems if you look at recent spending figures for the UK. According to figures from Barclaycard the amount of money that people are spending rose by 4 per cent in May compared to the same time last year.
It is hoped that this will spark yet another ray of light on the British economy as another possible sign of economic recovery. The spending figure is expected to be way above the CPI when the figures are released next week which is expected to be just over 2.5 per cent.
It is unclear if there is a sharp rise in confidence or whether it has been helped by businesses slashing prices to try to generate sales. A large amount of the spending was on treats, with people happy to spend their money to feel better and have fun. Popular choices for what people chose to spend their money was on flights, as they went on holiday and at home visits to cinemas and theatre shows.
Online shopping has seen growth, internet sales are seeing huge amounts of growth as more and more people look to the internet for cheaper products that are a more convenient purchase. High street shops haven’t felt as much benefit as they lose ground to internet shopping.
May is often a huge time for DIY and home improvement stores as people look to start projects on their home over the bank holiday weekends but the weather has put a huge dampener on this for lots of people. The weather could have been a huge factor in the amount of people choosing to leave the country to chase a little sunshine, causing a boost to spending on flights.
While the economy is showing signs of growth, confidence is still very fragile. Sharp increases in costs from things like utility bills and fuel costs could make people go from feeling ok about spending money to worrying about it because of their bills.