McKinsey: Consumer activity in the UK is picking up

According to Tom Youldon, a partner at McKinsey, retail sales in the UK are rebounding, with inflation falling to the target of 2% and consumer confidence reaching its highest level since November 2021. He said that the May bank holiday and shoppers’ willingness to spend on non-essential items may have boosted sales activity. However, overall sales volumes are still slightly below pre-pandemic levels, and fluctuations may continue. He added that many shoppers are quickly shifting from saving to spending. With the arrival of warmer months, retailers will hope that declining inflation and rising wages will boost consumer confidence, and the European Championship and summer holiday shopping will also encourage more spending.