Great expectations for personal finances over the coming year
GfK’s long-running Consumer Confidence Index increased three points to -27 in May. All measures were up in comparison to last month’s announcement.
Joe Staton, Client Strategy Director GfK, says: “The cost-of-living crisis has been part of our daily financial reality for a long time, with double-digit inflation and record-high food prices. But despite those pressures, May sees an encouraging three-point uptick in consumer confidence. This is the fourth monthly increase in a row from January’s score of -45. While Brits have little control over the general economy, it’s good to see further improvement in how people view their personal finances in the next 12 months with a robust five-point jump to -8. This measure most keenly reflects our hopes and fears for the coming year, and it underpins our ability to spend on goods and services that drive our economy. Of course, the headline score of -27 means we’re still deep in negative territory and a long way from any ‘sunny uplands’. However, the overall trajectory this year is positive and might reflect a stronger underlying financial picture across the UK than many would think. But everybody must hold on tight as it could still be a rocky ride out of these tough times.”
UK Consumer Confidence Measures – May 2023
The Overall Index Score increased three points to -27 in May. All measures were up in comparison to last month’s announcement.
Personal Financial Situation
The index measuring changes in personal finances during the last 12 months is up one point at -20; this is two points better than May 2022.
The forecast for personal finances over the next 12 months increased five points to -8, which is 17 points higher than this time last year.
General Economic Situation
The measure for the general economic situation of the country during the last 12 months is up one point at -54; this is nine points higher than in May 2022.
Expectations for the general economic situation over the next 12 months have increased by four points to -30; this is 26 points better than May 2022.
Major Purchase Index
The Major Purchase Index is up four points to -24; this is 11 points higher than this month last year.
Savings Index
The Savings Index is unchanged this month at +19; this is nine points higher than this time last year.
—-
Notes to editor
Please source all information to GfK.
Press contact: for further details or to arrange an interview, please contact Greenfields Communications:
Stuart Ridsdale E: stuart@greenfieldscommunications.com T +44 (0) 7790 951229 OR
Lucy Green E: lucy@greenfieldscommunications.com T +44 (0) 7817 698366
—-
About the survey
- The UK Consumer Confidence Barometer is conducted by GfK.
- This month’s survey was conducted among a sample of 2,000 individuals aged 16+.
- Quotas are imposed on age, sex, region and social class to ensure the final sample is representative of the UK population.
- Interviewing was conducted between May 3rd and May 12th 2023
- The figures contained within the Consumer Confidence Barometer have an estimated margin of error of +/-2%.
- The Overall Index Score is calculated using underlying data that runs to two decimal points.
- Press release dates for the remainder of 2023 are: May 19th; June 23rd; July 21st; Aug 25th; Sept 22nd; October 20th; November 24th; and December 15th.
- Any published material requires a reference to GfK e.g., ‘Research carried out by GfK.’
- This study has been running since 1974. Back data is available from 2006.
- The table below is an overview of the questions asked to obtain the individual index measures:
|
Personal Financial Situation (Q1/Q2) |
This index is based on the following questions to consumers: ‘How has the financial situation of your household changed over the last 12 months?’ ‘How do you expect the financial position of your household to change over the next 12 months?’ (a lot better – a little better – stay(ed) the same – a little worse – a lot worse) |
|
General Economic Situation (Q3/Q4) |
This index is based on the following questions to consumers: ‘How do you think the general economic situation in this country has changed over the last 12 months?’ ‘How do you expect the general economic situation in this country to develop over the next 12 months?’ (a lot better – a little better – stay(ed) the same – a little worse – a lot worse) |
|
Major Purchase Index (Q8) |
This index is based on the following question to consumers: ‘In view of the general economic situation, do you think now is the right time for people to make major purchases such as furniture or electrical goods?’ (right time – neither right nor wrong time – wrong time) |
|
Savings Index (Q10)
|
This index is based on the following question to consumers: ‘In view of the general economic situation do you think now is?’ (a very good time to save – a fairly good time to save – not a good time to save – a very bad time to save) (Commented on but not included in the Index Score) |
GfK. Growth from Knowledge.
For over 85 years, we have earned the trust of our clients around the world by solving critical business questions in their decision-making process around consumers, markets, brands and media. Our reliable data and insights, together with advanced AI capabilities, have revolutionized access to real-time actionable recommendations that drive marketing, sales and organizational effectiveness of our clients and partners. That’s how we promise and deliver “Growth from Knowledge”.
