Finance
UK consumers turn a little less gloomy in May, GfK survey shows
Published by Global Banking & Finance Review®
Posted on May 23, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 23, 2025
2 min readLast updated: January 23, 2026
UK consumer confidence improved in May, rising to -20 from -23, driven by interest rate cuts and easing trade tensions, according to GfK.
MANCHESTER, England (Reuters) -Britain's consumers turned a bit more confident in May, according to a survey published on Friday that might reflect the impact of falling interest rates and an easing of global trade tensions.
Market research firm GfK's consumer confidence index rose to -20 in May from -23 in April, led by more optimism among households over the outlook for their finances and the wider economy.
A Reuters poll of economists had pointed to a smaller increase to -22.
Neil Bellamy, consumer insights director at GfK, said consumers may have breathed a sigh of relief from the Bank of England's May 8 interest rate cut, as well from a partial respite in President Donald Trump's US trade war.
"Those dangers - especially the issue of inflation – have not disappeared but the consumer mood in the UK does appear to have improved a little," Bellamy said.
Nonetheless, the reading remained some way below the survey's long-run average of -11.
The GfK index is not seasonally adjusted and has risen in May in eight of the last 10 years.
GfK surveyed 2,007 people over the first half of the month, before official data this week showed inflation surged in April by more than expected.
Overall the survey fitted with a picture of fragile confidence among businesses and consumers, with price pressures stubbornly high and the economy forecast to grow only slowly in the second half of 2025.
Retail sales data for April, due at 0600 GMT, will give another indication of the health of the consumer economy.
(Reporting by Andy BruceEditing by William Schomberg)
The GfK consumer confidence index rose to -20 in May from -23 in April, indicating a slight improvement in consumer sentiment.
The rise in consumer confidence may reflect the impact of the Bank of England's interest rate cut and a partial easing of inflation concerns.
Despite the increase, the reading remains below the survey's long-run average of -11, indicating ongoing concerns among consumers.
The survey suggests a picture of fragile confidence among businesses and consumers, with price pressures remaining high and slow economic growth expected.
Retail sales data for April, scheduled for release, will provide additional indications of the health of the consumer economy.
Explore more articles in the Finance category
