The index found that all five measures rose in May, with the forecast for personal finances for the year ahead sharply increasing by five points from the previous month to a positive score of two, albeit still five points worse than the same month in 2024.

The index measuring changes in personal finances during the last year was up three points at -7, and three points better than in May 2024.

Expectations for the general economic situation over the next 12 months was boosted by four points, reaching a total score of -33. However, this was 16 points worse than in May 2024.

There was a muted increase in the measure for the general economic situation of the country during the last 12 months, rising by a single point to -46 and seven points worse off than in May 2024.

The Major Purchase Index, which examines whether now is the right time to make a major purchase, was up three points at -16 and 10 points better than this month last year.

However, despite the good news elsewhere, the Savings Index fell two points, although it remained in positive territory at 28 and one point above May 2024.

The findings are based on nationally representative sample of 2,007 UK adults carried out between 1^st and 14^th May.

Neil Bellamy, consumer insights director at GfK, an NIQ Company, said: “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.”