Consumer confidence inched up by two points in May in a similar rise as April driven by “the latest drop in headline inflation and the prospect of interest rate cuts in due course”.
The overall index score for consumer confidence increased by two points to -17 in May, according to the latest GfK Consumer Confidence Barometer.
Four indexes measuring consumer confidence were up, while one was down compared with last month.
The index measuring consumers’ confidence in their personal financial situation over the past 12 months was up by one point to -10.
When looking ahead to the next 12 months, the index measuring consumers’ confidence in their personal finances increased five points to 7, which was 15 points higher than this time last year.
Consumer confidence in the general economic situation over the past 12 months increased by two points to -39 and increased by four points to -17 when looking at the next 12 months.
The major purchase index rose by one point to -26, while the savings index over the next 12 months increased by one point to 27, two points higher than it was this time last year.
Joe Staton, client strategy director for GfK, says: “There was another strong showing for the UK consumer confidence index this month, driven by a jump in the outlook for our personal finances (up five) and a boost for our view on the wider economy in the coming year (up four).
“The only negative in May is the slight dip in our major purchase measure (down one point to -26), reinforcing the fact that the cost-of-living crisis is still a day-to-day reality for all of us.
“However, with the latest drop in headline inflation and the prospect of interest rate cuts in due course, the trend is certainly positive after a long period of stasis, which has seen the overall index score stuck in the doldrums.
“All in all, consumers are clearly sensing that conditions are improving. This good result anticipates further growth in confidence in the months to come.”
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