The increase in consumer confidence in May, the fourth monthly rise in a row, was driven by a more optimistic outlook for the year ahead, with the forecast for personal finances for the next 12 months up five points from April to -8, 17 points higher than the same month last year.

Expectations for the general economic situation received a four-point boost to -30, 26 points better off than in May 2022.

There were also one-point increases in measures for both personal finances and the general economic situation over the previous year, with scores of -20 and -54 respectively.

The major purchase index, which measures whether now is the right time to make a major purchase, rose four points from April’s score to -24, which is 11 points higher than in May 2022.

The savings index, which covers whether the current time is good for saving money, was unchanged compared to the previous month at a positive score of 19, and nine points higher than the same month last year.

The findings are based on a nationally representative survey of 2,000 UK adults carried out between 3rd and 12th May.

Joe Staton, client strategy director at GfK, said: “While Brits have little control over the general economy, it’s good to see further improvement in how people view their personal finances in the next 12 months with a robust five-point jump to -8. 

“Of course, the headline score of -27 means we’re still deep in negative territory and a long way from any ‘sunny uplands’.

“However, the overall trajectory this year is positive and might reflect a stronger underlying financial picture across the UK than many would think. But everybody must hold on tight as it could still be a rocky ride out of these tough times.”