By Daniel Hunter

Consumer confidence in the UK rose in May according to GfK’s UK Consumer Confidence Index, which increased by two points.

With the overall index increasing there were also two measures that saw increases this month, two measures decreased and the remaining measure stayed the same. The annual moving average stays the same at -29.

"After the revised ONS figures showed the economy is deeper in recession than previously thought, the Government will view these figures as good news," Nick Moon, Managing Director of Social Research in GfK, commented.

"However, while this rise is indeed positive, consumer confidence remains mired in the very negative position it has been in for almost 18 months.

"In light of last week’s revised GDP figures, it’s worth noting that the Index is at exactly the same level it was when the economy was entering recession in January and February this year.

"The driver for this month’s surprise rise in consumer sentiment is borne entirely out of how people view the future rather than how they feel looking back at the last year. Even though optimism about how the economy will perform over the next 12 months has risen by seven points in the last month, it is still significantly down on where it was this time last year.”

Personal Financial Situation

The index measuring changes in personal finances during the last twelve months has stayed the same this month at -23; this is five points lower than May 2011.

The forecast for personal finances over the next twelve months has increased four points to -9; this is six points lower than this time last year.

General Economic Situation

The measure for the general economic situation of the country during the last twelve months has decreased one point this month to -58; this is fourteen points lower than May 2012.

An expectation for the general economic situation over the next twelve months has increased by seven points to -26, eleven points lower than May ‘11.

Climate for Major Purchases

The major purchases measure has decreased by two points this month to -32; which is six points lower than this time last year.

Savings Index

The ‘now is a good time to save’ Index, has increased two points to -16, which is fifteen points lower than May ’11.

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