According to the latest BRC-Opinium data, the net proportion of consumers in May who believed the state of the UK economy will improve in the next three months was -48%, compared with -53% in April, marking a slight uplift.

Sentiment around their own financial situation also improved slightly, up from -21% in April to -16% in May.

The cost-of-living continues to bite hard, with an expectation among consumers that personal spending on retail will escalate up to 7% in May, from 5% in April.

The percentage of people worried about the impact of the Middle East conflict on their day-to-day lives also grew, with 82% expecting the price of food to rise, up from 80% in April; while 74% (versus 73%) expect the price of non-food products to increase; and 83% envisage increasing energy bills, compared with 81% in April.

Helen Dickinson, chief executive of the BRC, said: “Consumer confidence, while firmly negative, saw a slight lift in May following signs of de-escalation in the Middle East. Younger consumers drove this improvement in expectations for the economy and household finances, helped by rising real wages among this generation. But the outlook remains fragile: inflation is set to rise, and more than four in five people expect food prices to climb. 

“If government wants to keep consumer confidence heading in the right direction, it must now make a choice: act now, or let these inflationary pressures spiral, pushing up prices for households. Energy prices are pushing up costs for retailers and their supply chains, with the government’s energy taxes and levies making up as much as 65% of business bills. Cutting these charges is the fastest way to ease inflation and support consumer confidence. Delay will only make the next cost of living squeeze harder for households.”

Just 11% of consumers surveyed in May, expect the state of the UK economy to improve over the coming three months compared with the previous quarter, with 59% expecting it to worsen and 25% predicting it to stay the same, leading to an overall net balance of -48%.