UK consumer confidence continues to recover in May - GfK

UK consumer confidence continued to recover in May despite record-high food prices, according to a long-running survey released on Friday.

GfK’s consumer confidence index printed at -27, up three points from April.

Within that, all individual measures were higher on the month. The index of expectations for personal finances over the coming year ticked up five points from April to -8 in May. The gauge for expectations for personal finances over the past 12 months rose one point to -20.

The index for the general economic situation over the next year came in at -30.0 in May, up from -34.0 a month earlier, while the same index but for the situation over the last 12 months rose one point to -54.0.

The major purchase index edged up four points to -24 and the savings measure was flat on the month in May at 19.0.

Joe Staton, client strategy director at GfK, said: "The cost-of-living crisis has been part of our daily financial reality for a long time, with double-digit inflation and record-high food prices. But despite those pressures, May sees an encouraging three-point uptick in consumer confidence. This is the fourth monthly increase in a row from January’s score of -45.

"While Brits have little control over the general economy, it’s good to see further improvement in how people view their personal finances in the next 12 months with a robust five-point jump to -8. This measure most keenly reflects our hopes and fears for the coming year, and it underpins our ability to spend on goods and services that drive our economy. Of course, the headline score of -27 means we’re still deep in negative territory and a long way from any ‘sunny uplands’.

"However, the overall trajectory this year is positive and might reflect a stronger underlying financial picture across the UK than many would think. But everybody must hold on tight as it could still be a rocky ride out of these tough times."