May saw a slightly improved consumer mood but there are clear challenges ahead, states GfK, whose Consumer Confidence Index increased two points to -23 this month. Four measures were up and one was down, compared to last month’s announcement. The Major Purchase Index dropped two points to -20, leaving it four points lower than in May last year.
Neil Bellamy, consumer insights director at GfK, an NIQ Company, says: “Consumers appear to be in a more generous mood in May, with a two-point increase in the headline score and improving perceptions of both personal finances and the wider economy.
"In contrast, there is a drop in major purchase intentions, with this measure down two points to -20 in May, its lowest level since January 2025. Key income groups are recording more worrying major purchase scores. For those earning £14,500 to £24,999, for example, the May score is -33, a 19-point fall below the -14 seen in April. Similarly, there is also a steep fall within the average household income group (£35,000 to £49,999), with a 10-point drop from -17 to -27. Clearly, for specific groups of consumers, the impact of cost of living pressures are acute.
"Moreover, our savings measure – down by the unusually high amount of 10 points – suggests people are diverting funds from savings accounts to pay for day-to-day expenses.
"Inflation may have fallen in April, but with price pressures expected to rise again and continued uncertainty around interest rates, it’s unlikely May marks the beginning of a sustained improvement."
