Consumer confidence continues upwards trend in May

GfK’s Consumer Confidence Index rose three points in May, with all measures ahead of those recorded in April.

Reaching -27 points, May is the fourth consecutive month in which the index has increased, after a dip in January.

The long-standing index is measured in five measures:

Of those surveyed, opinions on personal financial situation over the last 12 months rose one point to -20, while personal financial situation for the next 12 months rose five points to -8.

Consumer opinions on the general economic situation over the last 12 months rose 1 points to -54, while feelings about the next 12 months rose four points to -30.

The major purchase index, which measures consumer likelihood to make larger, discretionary purchases, increased four points to -24.

The savings index, which does not contribute to the overall score, was unchanged at 19 points.

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.”

He adds: “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.”