Consumer confidence recovered in May, regaining all the ground lost during the Covid outbreak, as lockdown restrictions were relaxed and the UK’s successful vaccination rollout continued.
Sentiment rose six points in May as consumer optimism about personal finances and the economy increased, the GfK Consumer Confidence Index revealed. That was the highest score recorded in the past year.
Consumers were also positive about the general economic situation at present, with that measure up 10 points month on month and seven year on year.
Confidence about economic prospects also jumped in May. That measure rose 15 points – 58 points higher than last year.
Consumers are now also more likely to make a major purchase.
GfK client strategy director Joe Staton said: “The financial mood of the nation has bounced back to its pre-lockdown figure this month, meaning confidence has made up all the ground lost to Covid-19.
“UK consumer confidence is being driven by continued optimism for our future personal finances and for the wider UK economy in the next 12 months.
“These findings reflect April’s feelgood reopening of outdoor pubs, shops, gyms and hairdressers, combined with continuing vaccination success – all this before the possibility of green-list vacation opportunities in May.”
“In addition, we’re seeing a healthy uptick in the major purchase index, with more consumers seizing the opportunity to splash the ‘accidental savings’ that some have collected.
“Now really is a good time to buy. Growing confidence is fuelling the economy and only a reversal to lockdown can dampen this solid momentum.”
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