Consumer confidence across the UK has posted a rebound to pre-pandemic levels as the nation emerged out of its latest round of lockdowns and looked forward to resuming economic activity once again. GfK’s consumer confidence index surged to -9 during May, up from -15 in April, and touching the reading seen before the UK had imposed its first round of lockdown more than a year ago.

The jump was powered by increased optimism among consumers about the state of their personal finances over the coming year, which has risen by 19 points from the same period a year back. Consumers are also feeling more upbeat about the UK economy in general, with its sub-index measurement rising by 15 points in May to touch +4.

While consumers continue to remain pessimistic about making big ticket purchases, the level of pessimism has eased significantly, rising from -12 in April to -7 in May – a jump of 40 points since May 2020. The spike in this sub-index could be powered by pent-up demand among consumers and powered by savings accrued over the past several months when the economy remained in lockdown.

Client strategy director at GfK, Joe Staton, observes, “These findings reflect April’s ‘feelgood’ re-opening of outdoor pubs, shops, gyms and hairdressers combined with continuing vaccination success, all this before the possibility of green-list vacation opportunities in May. Growing confidence is fuelling the economy and only a reversal to lockdown can dampen this solid momentum.”