UK consumer confidence increased for the fourth month in a row since January as May saw an “encouraging three-point uptick” though it could still be a “rocky ride out of these tough times”.
The overall index score for consumer confidence inched up three points to -27 in May, according to the latest GfK Consumer Confidence Index.
The index measuring consumers’ confidence in their personal financial situation over the past 12 months increased one point to -20 and increased five points to -8 over the next 12 months.
Consumer confidence in the general economic situation over the past 12 months increased by one point to -54 and jumped four points to -30 over the next 12 months.
The Major Purchase Index increased four points to -24, rising 11 points higher than this month last year while the Savings Index remained unchanged at 19.
GfK client strategy director Joe Staton 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.”
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