Do you feel more financially confident? New research suggests UK has turned a corner

The UK’s consumer confidence grew again in May, with people continuing to see a brighter future for their finances.

This is according to the Consumer Confidence Index from researchers GfK. They saw a two-point increase from April to May regarding people’s feelings about their economic situation.

The Consumer Confidence Index provides insight into how UK consumers feel about their finances and the wider economy using five measures:

• Personal financial situation over the last 12 months
• Personal financial situation over the next 12 months
• General economic situation over the last 12 months
• General economic situation over the next 12 months
• Major Purchase Index

Of these five measures, four of them were up and only one of them was down in comparison to last month’s announcement.

The opinion on personal finances improved by one point, taking the total up to -10, which is 10 points higher than May 2023.

The forecast for personal finances over the next 12 months is also up five points at +7, showing that the 2,000 respondents were generally optimistic about their personal finances.

When asked “Do you think now is the right time for people to make major purchases, such as furniture or electronic goods?” The consensus was that it was not.

The score for this measure decreased by one point to -26, which is two points lower than in May of the previous year.

The report’s authors concluded that: “All in all, consumers are clearly sensing that conditions are improving. This good result anticipates further growth in confidence in the months to come.”

If you are feeling more financially confident and would like to explore how you can make more of your money, speak to our experienced team of Independent Financial Advisers.