Britain's consumers turned a bit more confident in May, according to a survey published on Friday that might reflect the impact of falling interest rates and an easing of global trade tensions.

Market research firm GfK's consumer confidence index rose to -20 in May from -23 in April, led by more optimism among households over the outlook for their finances and the wider economy.

A Reuters poll of economists had pointed to a smaller increase to -22.

Neil Bellamy, consumer insights director at GfK, said consumers may have breathed a sigh of relief from the Bank of England's May 8 interest rate cut, as well from a partial respite in President Donald Trump's US trade war.

"Those dangers - especially the issue of inflation – have not disappeared but the consumer mood in the UK does appear to have improved a little," Bellamy said.

Nonetheless, the reading remained some way below the survey's long-run average of -11.

The GfK index is not seasonally adjusted and has risen in May in eight of the last 10 years.

GfK surveyed 2,007 people over the first half of the month, before official data this week showed inflation surged in April by more than expected.

Overall the survey fitted with a picture of fragile confidence among businesses and consumers, with price pressures stubbornly high and the economy forecast to grow only slowly in the second half of 2025.

Source: Trading Economi