Consumer confidence recovers in May

Consumer confidence has continued to recover by a three-point rise to -27 in May, according to GfK’s long-running Consumer Confidence Increase. 

While all measures were up in comparison to last month’s announcement, the figures remain in the minus. 

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

Meanwhile, the measure for the general economic situation of the country during the last 12 months rose 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 Major Purchase Index is also up four points to -24; this is 11 points higher than this month last year.

The Savings Index is unchanged this month at +19, which is nine points higher than this time last year.

Joe Staton, client strategy director at 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. 

“While Brits have little control over the general economy, it’s good to see further improvement in how people view their personal finances in the next 12 months with a robust five-point jump to -8. 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.” 

He added: “While the overall trajectory this year is positive and might reflect a stronger underlying financial picture across the UK than many would think, everybody must hold on tight as it could still be a rocky ride out of these tough times.”