May sees “encouraging” uptick in consumer confidence

UK consumer confidence rose by three points in May as all measures increased, including big-ticket items.

According to the latest GfK Consumer Confidence Index, overall figures saw an increase by three points to -27 in May 2023.

The Major Purchase Index, which includes big ticket items such as furniture, is up four points to -24; this is 11 points higher than this month 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. 

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

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

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.

“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.

“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. But everybody must hold on tight as it could still be a rocky ride out of these tough times.”

Save this article for later

You can revisit this article if you save it as favourite news!

Leave a Comment