Consumer confidence negative but rising in May

The index, which measures general economic and personal financial situations and consumers’ spending and saving, showed four measures increased and one decreased in May.

The overall index score for the month of May was -10, up three percentage points from -13 in April, but down three percentage points year on year.

Consumers’ personal financial situation over the past 12 months saw a four percentage point increase to +3, while optimism about finances over the next 12 months was at +5, up from 0 in April.

However, concerns about general economic uncertainty persisted, with the measure flat at -30 as it was the previous month. Some consumers though may be beginning to see light at the end of the Brexit tunnel, as the index rose five percentage points to -29 in terms of their view of the general economic situation over the next 12 months.

The major purchase measure jumped two percentage points to +1.

Client strategy director at GfK Joe Staton said the warmer weather brought something of an uptick to consumer confidence but warned that it was unlikely to rise too high until “Brexit’s murkiness has finally come to an end”.

He said: “Despite a backdrop of Brexit-related change and complexity, and price rises for most household bills in April, consumers have managed a seasonal spring in their step with a three-point uptick in consumer confidence this month.

“But before we see a leap back into the brighter positive numbers last seen in January 2016, consumers will need to be convinced in heart, head and wallet that Brexit’s murkiness has finally come to an end. And there are potentially dark clouds on the horizon with the next EU deadline of October 31.”