The UK's consumer confidence has shown a modest yet meaningful uptick in May, with positive implications for the home and interiors market. GfK's long-running Consumer Confidence Barometer, powered by the Nuremberg Institute for Market Decisions (NIM), revealed a three-point increase in the Overall Index Score to -20 – the highest reading in several months.
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Neil Bellamy, Consumer Insights Director at GfK, an NIQ company, commented:
'There's an improvement across all five key indicators in May, led by two forward-looking findings. The measure for personal finances looking ahead for the next 12 months has moved out of negative territory, increasing by five points to +2. There's a similar improvement in how consumers see the coming year's general economy, with a four-point boost to -33. It's also worth noting the three-point rise in the measure on major purchases for big-ticket items such as furniture or electrical goods, with May's score of -16 marking the highest level seen since the end of 2024.'
The data suggests renewed optimism in household spending, especially in categories linked to home improvements, such as flooring, furnishings, window coverings, bathrooms, and home textiles. The Major Purchase Index, a key indicator for sectors reliant on consumer investment in home environments, is up three points to -16, a notable 10-point improvement on the same period last year.
This renewed consumer confidence follows recent economic developments, including a 0.25% base rate cut by the Bank of England on 8 May, providing a degree of financial relief to households. Additionally, fading fears around the inflationary impact of "Trump Tariffs" appear to have stabilised sentiment after a volatile April.
Bellamy added:
'Have consumers taken comfort from the Bank of England's May 8th quarter-point base-rate cut? And have they breathed a tiny sigh of relief since April, when the sudden turbulence of the Trump Tariffs was prompting dire warnings of economic damage and a return to inflation? Those dangers, especially the issue of inflation, have not disappeared, but the consumer mood in the UK does appear to have improved a little.'
Despite the improved outlook, consumer caution remains. The measure of general economic conditions over the past year is still at a low -46, and expectations for the year ahead, while improved, sit at -33. However, the Savings Index remains relatively stable at +28, suggesting that households are still balancing cautious saving with selective spending — particularly on long-term home investments.
For the interiors sector, encompassing furniture, fittings, logistics, and home lifestyle brands, this rise in confidence offers a timely boost as consumers become more willing to invest in their living spaces.
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