British consumer confidence has bounced back this month, according to the latest GfK survey, as fears of a global trade war subside and optimism about personal finances improves — despite a spike in inflation linked to rising household bills.
The consumer sentiment index rose by three points to -20 in May, its highest level in two months, partially reversing April’s sharp decline triggered by escalating global tariff tensions and financial market volatility. GfK reported that all five measures of consumer sentiment improved, with the largest gain in expectations for personal finances over the next year, which jumped five points into positive territory at +2.
More than 2,000 households were surveyed for the monthly report. Respondents also expressed increased confidence in the broader economic outlook over the next 12 months, and the index tracking major purchases, such as household appliances and furniture, rose by three points to its highest since 2024 — suggesting that consumer spending remains resilient.
“Inflation fears have not disappeared,” said Neil Bellamy, consumer insights director at GfK. “But the consumer mood in the UK does appear to have improved a little.”
The uplift in confidence comes in the wake of a de-escalation in trade tensions between the US and China. An earlier announcement of new US tariffs in April by President Donald Trump had spooked global markets and dented consumer and business confidence. But a subsequent temporary suspension of tariffs and a broader reset in global trade relations appears to have calmed nerves.
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