Consumer confidence up by three points in May

GfK’s long-running consumer confidence index increased three points to -27 in May. 

The index measuring changes in personal finances during the last 12 months is up one point at -20, which is two points better than May 2022. 

The forecast for personal finances over the next 12 months increased five points to -8, which is 17 points higher than this time last year.

The measure for the general economic situation of the country during the last 12 months is up one point at -54. This is nine points higher than in May 2022. 

Expectations for the general economic situation over the next 12 months have increased by four points to -30, which is 26 points better than May 2022.

The UK Consumer Confidence Barometer was conducted by GfK on 2,000 individuals between 3 May and 12 May. It has been running since 1974.

Joe Staton, client strategy director GfK, said: “The cost-of-living crisis has been part of our daily financial reality for a long time, with double-digit inflation and record-high food prices. But despite those pressures, May sees an encouraging three-point uptick in consumer confidence. This is the fourth monthly increase in a row from January’s score of -45. 

“This measure most keenly reflects our hopes and fears for the coming year, and it underpins our ability to spend on goods and services that drive our economy. Of course, the headline score of -27 means we’re still deep in negative territory and a long way from any ‘sunny uplands’. However, the overall trajectory this year is positive and might reflect a stronger underlying financial picture across the UK than many would think.”