Upward momentum in consumer confidence continues; major purchase down

UK consumer confidence increased in May as four measures rose during the month, while major purchases slipped.

According to the latest GfK Consumer Confidence Index, overall figures increased two points to -17 in May. Four measures were up and one was down in comparison to last month’s announcement.

The Major Purchase Index, which includes big ticket items such as furniture, is down one point to -26; this is two points lower than this month last year.

The measure for the general economic situation of the country during the last 12 months is up two points at -39; this is 15 points higher than in May 2023. 

The index measuring changes in personal finances during the last year is up one point at -10; this is ten points better than May 2023.

The Savings Index has increased one point to +27 in May; this is eight points higher than this time last year.

Joe Staton, Client Strategy Director, GfK, says: “There was another strong showing for the UK Consumer Confidence Index this month, driven by a jump in the outlook for our personal finances (up five) and a boost for our view on the wider economy in the coming year (up four). The only negative in May is the slight dip in our major purchase measure (down one point to -26), reinforcing the fact that the cost-of-living crisis is still a day-to-day reality for all of us.

“However, with the latest drop in headline inflation and the prospect of interest rate cuts in due course, the trend is certainly positive after a long period of stasis which has seen the Overall Index Score stuck in the doldrums. All in all, consumers are clearly sensing that conditions are improving. This good result anticipates further growth in confidence in the months to come.”

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