UK consumer confidence inched up by three points month-on-month in May, rising to -20, according to GfK’s Consumer Confidence Index, despite ongoing inflation concerns and Trump Tariff fears.
With improvements across all five key indictators that make up the index in May, confidence in consumers’ personal finances saw a marked upward shift. This moved out of negative territory, from -3 in April to +2 in May, increasing by +5 points – however this is still down by -5 index points compared to the same time last year.
Consumers’ mood on the general economic outlook also improved, rising +4 points to -33, however this is also still much lower compared to May 2024 (-16 index points year-on-year).
“Have consumers taken comfort from the BoE’s May base-rate cut? Have they breathed a sigh of relief since April when turbulence of Trump Tariffs was prompting warnings of economic damage and a return to inflation? Those dangers, especially the issue of inflation, have not disappeared, but the consumer mood does appear to have improved a little,”
Neil Bellamy, Consumer Insights Director, GfK
The improvements in confidence across personal finances and the overall economic outlook for the the next 12months in May also help to improve spend propensity for big ticket items.
The index showed a +3 point rise in the measure on major purchases, such as furniture or electrical goods, with May’s score of -16 marking the highest level since the end of 2024.
Retail Rewired 
Leave a comment