UK Consumer Sentiment Improves Slightly, Recovery Doubtful

2026-05-21 23:17 By Farida Husna 1 min. read

The UK GfK Consumer Confidence Index edged up to -23 in May 2026 from -25 in the previous month, which had marked the lowest reading since October 2023 amid worries about the Iran war.

The result defied market estimates of -28, suggesting households were slightly less pessimistic.

Even so, GfK consumer insights director Neil Bellamy cautioned that the uptick was unlikely to mark a sustained recovery in sentiment.

The savings measure dropped sharply, down 10 points, indicating many households are dipping into reserves to meet everyday expenses as living costs remain high.

Meanwhile, the gauge tracking major purchase intentions slipped two points to -20, its lowest since January 2025, with lower-income groups especially reluctant to commit to big-ticket spending.

Bellamy added that while inflation eased in April, price pressures are expected to re-emerge, and uncertainty over interest rates continues to weigh on confidence and spending plans.



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UK Consumer Sentiment Improves Slightly, Recovery Doubtful
The UK GfK Consumer Confidence Index edged up to -23 in May 2026 from -25 in the previous month, which had marked the lowest reading since October 2023 amid worries about the Iran war. The result defied market estimates of -28, suggesting households were slightly less pessimistic. Even so, GfK consumer insights director Neil Bellamy cautioned that the uptick was unlikely to mark a sustained recovery in sentiment. The savings measure dropped sharply, down 10 points, indicating many households are dipping into reserves to meet everyday expenses as living costs remain high. Meanwhile, the gauge tracking major purchase intentions slipped two points to -20, its lowest since January 2025, with lower-income groups especially reluctant to commit to big-ticket spending. Bellamy added that while inflation eased in April, price pressures are expected to re-emerge, and uncertainty over interest rates continues to weigh on confidence and spending plans.
2026-05-21
UK Consumer Confidence Plummets to 2-1/2-Year Low
The UK GfK Consumer Confidence Index dropped four points to -25 in April 2026, its largest decline in a year and the lowest level since October 2023, falling short of market expectations of -24. The sharp downturn reflects deepening concerns over the economic fallout from escalating Middle East tensions, with pessimism spreading across both personal finances and the broader UK economy. Households are increasingly anxious about rising prices, particularly at fuel pumps, which are straining budgets, as well as the prospect of further cost hikes in the months ahead.
2026-04-23
UK Consumer Confidence Hits 11-Month Low
The UK GfK Consumer Confidence Index fell to -21 in March 2026 from -19 in February, marking its lowest level in nearly a year as concerns over the Middle East conflict’s impact on inflation and growth weighed on sentiment. The largest decline came in households’ assessment of the general economic outlook for the next 12 months, which dropped 6 points, while views of personal finances remained steady. The report also showed a 4-point fall in willingness to make major purchases and a 6-point rise in the savings rate. British consumers faced surging energy costs, with petrol prices up roughly 50% since the Iran war began, while government support for households reliant on heating oil remained limited. Neil Bellamy, Consumer Insights Director at GfK, said: “People simply do not feel the economy is robust enough to ride out the knock-on effects from the Middle East conflict.”
2026-03-27