UK Consumer Confidence Steadies but Major Spending Falls, Says GfK Survey
GfK Survey Reveals Trends in UK Consumer Confidence and Spending
Consumer Sentiment in May
LONDON, May 22 (Reuters) - British consumers have turned a little less downbeat this month but are the least willing to make big purchases in almost a year and a half, underscoring the fragile mood among households, according to a survey published on Friday.
GfK's consumer confidence index, the longest-running survey of its kind in Britain, edged up to -23 from -25 which was its lowest since October 2023 and was seen as a reflection of worries about the Iran war.
A Reuters poll of economists had pointed to a reading of -28.
The GfK data typically shows a rise in the month of May.
Expert Insights and Economic Outlook
Commentary from GfK
Neil Bellamy, consumer insights director at GfK, said the latest findings were unlikely to prove a turning point.
Inflation and Interest Rate Concerns
"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," Bellamy said.
Major Purchases and Savings Behavior
GfK's gauge of major purchase intentions dropped two points to -20, its lowest since January 2025, with people on lower incomes particularly reticent to splash out.
A measure of savings fell by a hefty 10 points which suggested consumers were digging in to their savings accounts to pay for day-to-day expenses, GfK said.
Government Response and Broader Economic Factors
On Thursday finance minister Rachel Reeves announced further measures to offset the energy price shock triggered by the Iran war and a closely watched survey of businesses suggested worries about a possible change in prime minister were also weighing on the economy.
(Writing by William Schomberg, editing by Andy Bruce)
