FX.co ★ UK Consumer Confidence Improves in May

The GfK Consumer Confidence Index for the UK increased by three points, reaching -20 in May 2025. This rise exceeded market expectations of -22 and mostly offset the previous month's drop, which was influenced by concerns over tariffs. Although the index has risen, it still falls short of its long-term average, indicative of ongoing consumer caution. The rise was driven by more positive perceptions regarding the economy and personal finances, suggesting a potential boost in consumer spending. The 12-month economic outlook improved by four points to -33, while expectations for personal finances rose by five points to 2, marking a rare move into positive figures. Neil Bellamy, the Consumer Insights Director at GfK, mentioned that the Bank of England's quarter-point interest rate reduction in May may have offered some reassurance. Nevertheless, he warned that concerns over U.S. tariffs and the risk of a resurgence in inflation remain prominent issues.