Consumer confidence continues to recover with three-point increase to -27 in May

GfK’s long-running Consumer Confidence Index increased three points to -27 in May. All measures were up in comparison to last month’s announcement.

Joe Staton, Client Strategy Director, GfK, says: “The cost-of-living crisis has been fraction 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 gain dinky control over the general economy, it’s excellent 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 consider. But everybody must hold on tight as it could still be a rocky ride out of these tough times.”