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.
Neil Bellamy, consumer insights director at GfK, said the latest findings were unlikely to prove a turning point.
“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.
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.
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)
