Consumer confidence increases slightly in May

Consumer confidence increased this month, defying expectations, with the GfK index rising to minus 23, despite economic concerns affecting lower-income households’ purchasing intentions.

Four measures were up and one was down, compared to last month’s announcement.

Neil Bellamy, Consumer Insights Director at GfK, an NIQ Company, said “Consumers appear to be in a more generous mood in May, with a two-point increase in the headline score and improving perceptions of both personal finances and the wider economy.  

“In contrast, there is a drop in major purchase intentions, with this measure down two points to -20 in May, its lowest level since January 2025. Key income groups are recording more worrying major purchase scores. For those earning £14,500 to £24,999, for example, the May score is -33, a 19-point fall below the -14 seen in April. Similarly, there is also a steep fall within the average household income group (£35,000 to £49,999), with a 10-point drop from -17 to -27.

“Clearly, for specific groups of consumers, the impact of cost-of-living pressures are acute. Moreover, our savings measure – down by the unusually high amount of 10 points – suggests people are diverting funds from savings accounts to pay for day-to-day expenses. Inflation may have fallen in April, but with price pressures expected to rise again and continued uncertainty around interest rates, it’s unlikely May marks the beginning of a sustained improvement.”