UK consumer confidence rises slightly in May amid cost pressures

Consumer confidence in the UK showed a slight, unexpected improvement in May, even as underlying economic pressures intensified and households grew more cautious about spending. The long-running GfK Consumer Confidence Index rose by two points to minus 23, defying forecasts of a decline.

The headline increase was driven by modestly improved perceptions of both personal finances and the wider economic outlook for the year ahead. However, the overall index remains four points lower than it was in May of last year. The improvement coincides with a recent fall in inflation, but analysts warn it does not signal a durable recovery.

Beneath the surface, key indicators reveal significant strain. The measure tracking intentions to make major purchases fell two points to minus 20, its lowest level since January. This decline was particularly sharp among specific income groups. For those earning between £14,500 and £24,999, the major purchase score plummeted 19 points to minus 33. A similar, though less severe, drop of 10 points was recorded for households earning between £35,000 and £49,999.

Neil Bellamy, Consumer Insights Director at GfK, noted that while consumers appeared in a more...