Consumer confidence edges up in May but outlook remains uncertain
Consumer confidence has edged up in May as people’s perceptions about personal finances and the wider economy improved.
GfK’s Consumer Confidence Index has increased by two points to -23, although its major purchase measure has fallen by two points to -20 to reach the lowest level since January 2025.
Subscribe to TRBLooking at the measure for the forecast for personal finances over the next year, this has increased by two points to -2, which is four points lower than the same time last year.
Meanwhile, the measure for expectations for the general economic situation over the same period has risen by five points to -38. This is five points worse than May 2025.
Neil Bellamy, consumer insights director at GfK, said: “Consumers appear to be in a more generous mood in May, with a two-point increase in the headline score and improving perceptions of both personal finances and the wider economy.
“In contrast, there is a drop in major purchase intentions, with this measure down two points to -20 in May, its lowest level since January 2025. Key income groups are recording more worrying major purchase scores.
“For those earning £14,500 to £24,999, for example, the May score is -33, a 19-point fall below the -14 seen in April.
“Similarly, there is also a steep fall within the average household income group (£35,000 to £49,999), with a 10-point drop from -17 to -27. Clearly, for specific groups of consumers, the impact of cost-of-living pressures are acute.”
GfK’s measure for savings has fallen by an unusually high amount of 10 points which the company said suggests people are diverting funds from savings accounts to pay for day-to-day expenses.
Bellamy added: “Inflation may have fallen in April, but with price pressures expected to rise again and continued uncertainty around interest rates, it’s unlikely May marks the beginning of a sustained improvement.”
