No Improvement in Sight for Consumer Confidence

GfK’s long-running Consumer Confidence Index has decreased one point to -34 for May. Two measures increased in comparison to the 2nd COVID-19 flash of May 8th, two measures decreased, and one measure remained the same.

Joe Staton, GfK’s Client Strategy Director, comments:

“At -34, Consumer Confidence in the UK remains battered despite efforts at loosening the COVID-19 restrictions. With unemployment claims rising by the highest rate on record and warnings of a recession and possible tax hikes, the damage done by the coronavirus pandemic to the UK economic landscape has been laid bare.

"The lower scores we have registered during May for perceptions of the general economic situation reflect this, and the Government is dampening down expectations of an immediate economic bounce back. So, despite plans to get the country up and running, consumers feel we are not out of the woods yet.

"Confidence will remain fragile for some time and the possibility of another spike in COVID-19 cases as we adapt to the ‘new normal’ is an obvious danger.”

UK Consumer Confidence Measures – May 2020

The Overall Index Score decreased by one point over the past two weeks. Two measures decreased, two measures increased and one remained the same.

Personal Financial Situation

The index measuring changes in personal finances during the last 12 months is unchanged at -4; this is seven points lower than May 2019.

The forecast for personal finances over the next 12 months is slightly higher at -9 this month; this is 14 points lower than May 2019.

General Economic Situation

The measure for the general economic situation of the country during the last 12 months has dropped seven points to -55; this is 25 points lower than in May 2019.

Expectations for the general economic situation over the next 12 months are down one point at -54 points; this is 25 points lower than May 2019.

Major Purchase Index

The Major Purchase Index has increased two points to -47 in May; this is 48 points lower than it was in May 2019.

Savings Index

The Savings Index has stayed the same in May at +14; this is two points lower than at this time last year.

Source: Insight DIY & GfK Data

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