Overview
- GfK’s monthly survey showed a two‑point rise to minus 23 in May, up from minus 25 in April and still weaker than a year earlier.
- The index tracking willingness to buy big items fell two points to minus 20, its weakest reading since January 2025 and a sign that shoppers are shunning large purchases.
- GfK reported a 10‑point drop in its savings measure, which suggests many households are drawing on reserves to cover everyday costs.
- Neil Bellamy of GfK said the May uptick is unlikely to mark a sustained recovery because April’s fall in measured inflation may reverse and uncertainty about future interest rates remains.
- Finance minister Rachel Reeves announced measures to soften an energy‑price shock linked to the Iran war, a move aimed at shielding household budgets but one that underscores risks to consumer demand and short‑term economic growth.