UK consumer confidence saw a modest uptick in May, driven by falling inflation, though experts caution that significant economic headwinds remain. GfK's long-standing Consumer Confidence Index increased by two points to minus 23, yet this figure is still four points lower than the same period last year.
Mixed Signals in Key Indicators
Confidence in the general economy over the next 12 months rose by five points, but remains at minus 38, five points below May 2025. Personal finance expectations for the year ahead improved by two points to minus two, though this is four points lower than a year ago. The major purchase index, which gauges willingness to buy big-ticket items, fell two points to minus 20, its lowest level since January 2025 and four points below last year.
Income Group Disparities
Certain income brackets experienced sharper declines. Among households earning between £14,500 and £24,999, the major purchase score plummeted 19 points to minus 33. Similarly, those in the £35,000 to £49,999 range saw a 10-point drop to minus 27.
Neil Bellamy, consumer insights director at GfK, noted: "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. Clearly, for specific groups of consumers, the impact of cost-of-living pressures are acute."
Savings Dip as Expenses Rise
The savings measure dropped by an unusually high 10 points, suggesting households are drawing from savings to cover everyday costs. 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."
