UK Consumer Confidence Leaps Six Points In May

Easing of COVID-19 restrictions boosts mood as consumer confidence regains all ground lost due to pandemic.

GfK’s long-running Consumer Confidence Index increased six points to -9 in May. Three measures were up in comparison to the April 23rd announcement, one measure was down and one was flat.

Joe Staton, Client Strategy Director GfK, comments:

“The financial mood of the nation has bounced back to its pre-lockdown figure of minus 9 this month, meaning confidence has made up all the ground lost to COVID-19.

"UK consumer confidence is being driven by continued optimism for our future personal finances and for the wider UK economy in the next 12 months. The measure for the 'economy next year’ has recorded a  huge15-point jump this month and, since January, has leapt from -44 to +4. These findings reflect April’s ‘feelgood’ re-opening of outdoor pubs, shops, gyms and hairdressers, combined with continuing vaccination success - and don't yet include the possible extra boost if green-list vacation opportunities are announced.

"In addition, we’re seeing a healthy five-point uptick in the major purchase index, with more consumers seizing the opportunity to splash the ‘accidental savings’ that some have collected. Now really is a good time to buy. Growing confidence is fuelling the economy and only a reversal to lockdown can dampen this solid momentum.”

UK Consumer Confidence Measures – May 2021

The Overall Index Score increased six points to -9 in May. Three measures were up in comparison to the April 23rd announcement, one measure was down and one was flat.

Personal Financial Situation

The index measuring changes in personal finances over the last 12 months is down one point at -4; this is the same score as May 2020. 

The forecast for personal finances over the next 12 months is the same as last month at +10; this is 19 points higher than this time last year.

General Economic Situation

The measure for the general economic situation of the country during the last 12 months is up ten points at -48; this is seven higher than in May 2020.

Expectations for the general economic situation over the coming 12 months have improved by 15 points to +4; this is 58 points higher than May 2020.

Major Purchase Index

The Major Purchase Index has increased by five points to -7 in May; this is 40 points higher than it was this month last year.

Savings Index

The Savings Index is the same as last month at +22 in May; this is eight points higher than this time last year.

Source : GfK

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