The latest index showed increases in confidence in personal finances, with the measure for people’s personal financial situation over the past 12 months up four points from April to -7, and the measure covering the year ahead up two points to -2.

There was more positivity about the general economic situation too, with the measure for the year ahead up five points, albeit at -38, and the measure covering the previous 12 months up four points to -47 this month.

Neil Bellamy, consumer insights director at GfK, said: “Consumers appear to be in a more generous mood in May, with a two-point increase in the headline score and improving perceptions of both personal finances and the wider economy. “

However, there was a 10-point fall in the savings index, despite remaining at a positive score of 22, and the major purchase index, which examines whether now is the right time to make a big purchase, was down two points to -20.

Bellamy explained that the drop in major purchase intentions, at its lowest level since January 2025, was more worrying in some key income groups.

For example, Bellamy said that for those earning £14,500 to £24,999, the May major purchase index score is -33, a 19-point fall below the -14 seen in April. Similarly, there is also a steep fall within the average household income group (£35,000 to £49,999 ), with a 10-point drop from -17 to -27.

“Clearly, for specific groups of consumers, the impact of cost-of-living pressures are acute,” Bellamy concluded.

He added: “Moreover, our savings measure – down by the unusually high amount of 10 points – suggests people are diverting funds from savings accounts to pay for day-to-day expenses.

“Inflation may have fallen in April, but with price pressures expected to rise again and continued uncertainty around interest rates, it’s unlikely May marks the beginning of a sustained improvement.”