GfK's consumer confidence index jumps six points in May

The relaxing of certain Covid-19 related restrictions has boosted consumer sentiment across the UK as GfK's long-running consumer confidence index has now regained all the ground lost as a result of the pandemic.

GfK's consumer confidence index jumped six points to -9 in May, with three measures up in comparison to the 23 April release, one measure down and another flat.

The general economic situation index was up by ten points at -48, seven higher than in May 2020, while expectations for the general economic situation over the coming 12 months improved by 15 points to +4, 58 points higher than in the prior year.

The major purchase index increased by five points to -7 - 40 points higher than it was in May last year.

The index measuring changes in personal finances over the last 12 months was down one point at -4, the same score as in May 2020, while the savings index was the same as last month at +22, eight points higher than at the same time a year ago.

Joe Staton, GfK's client strategy director, said: "The financial mood of the nation has bounced back to its pre-lockdown figure of -9 this month, meaning confidence has made up all the ground lost to Covid-19.

"These findings reflect April’s 'feelgood' re-opening of outdoor pubs, shops, gyms and hairdressers combined with continuing vaccination success, all this before the possibility of green-list vacation opportunities in May. 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."