Marginal Uptick Signals Resilience

This 0.2-point rise to –6 in May reflects steady consumer confidence despite high borrowing costs and cost-of-living pressures.

Sentiment Breakdown

Regional Sentiment Comparison

London’s score of –3 benefits from stronger wages and incomes, while the North West lags at –9 amid tighter budgets.

Drivers of Confidence

Wage Growth: Higher pay in key sectors boosts disposable income, especially in urban areas.

Living-Cost Squeeze: Persistent inflation and energy bills keep households cautious on discretionary spending.

Retail-Rotation Ideas

The stabilisation supports a potential shift into FTSE 250 retailers benefiting from resilient consumer demand.

Marks & Spencer (M&S)

Combines premium food and affordable fashion to attract quality-seeking shoppers amid cautious spending.

ASOS

Affordability and style make it a strong play outside metropolitan hubs where consumers are more price-sensitive.

JD Sports

Athleisure appeal among younger, brand-loyal buyers positions it well in stronger-sentiment regions like London.

Actionable Pair Trades

Consumer Staples vs. Fast Fashion

Buy Tesco; Short Boohoo Group – Hedge steady staples against potential fast-fashion headwinds.

Luxury Grocers vs. Value Retailers

Buy Ocado; Short B&M European Value Retail – Capture high-margin online grocery trends versus discount pressure.

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