Published
May 19, 2023
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UK consumer confidence rises again but stays negative

Published
May 19, 2023

UK consumer confidence continues to move higher. From the record lows of late 2022, a steady recovery has gathered pace. 


UK consumer confidence up agin in May


Despite the cost-of-living crisis and stubbornly high inflation remaining part of our daily lives, households have been buoyed by a stronger-than-expected economy.

So May has seen another encouraging rise in consumer confidence with a three-point uptick (but still only to -27), according to GfK’s closely-watched survey of consumer sentiment, rising for the fourth month in a row and up from January’s score of -45. 

All May measures were up compared to last month’s announcement. While Britons have little control over the general economy, GfK said “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, which is 17 points higher than this time last year. 

The index measuring changes in personal finances during the last 12 months also lifted one point at -20, two points better than May 2022.  

The measure for the general economic situation of the country during the last 12 months is also up one point at -54, nine points higher than last May. 

Expectations for the general economic situation over the next 12 months have increased by four points to -30, some 26 points better than May 2022.

Meanwhile, the Major Purchase Index is also up four points to -24, 11 points higher than this month last year. 

Finally, the Savings Index remained unchanged this month at +19, still nine points higher than this time last year, but the forecast for personal finances over the next 12 months increased five points to -8.

Of course, we have to remember that the overall picture remains gloomy with plenty of negative figures, despite improving sentiment.

Joe Staton, Client Strategy Director, GfK, said: “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.”

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