Britons hold their nerve but turn warier about big spending plans, GfK says

LONDON, May 22 (Reuters) - British consumers have ​turned a ⁠little less downbeat this month ​but are the least willing to make big purchases in almost a ​year ‌and a half, underscoring the fragile mood among households, according to ⁠a survey published on Friday.

GfK's consumer confidence index, ⁠the longest-running survey of its ​kind in Britain, edged up to -23 from -25 which was its lowest since October 2023 and was seen as a reflection of worries ​about ‌the Iran war.

A Reuters poll of economists had pointed to a reading of -28.

The GfK data typically shows a rise in the month of May.

Neil Bellamy, consumer insights director ​at GfK, said the latest findings were unlikely to prove ‌a turning point.

"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," Bellamy said.

GfK's gauge of major ​purchase intentions dropped two points to -20, its lowest since January 2025, with people ‌on lower incomes particularly reticent to splash out.

A measure of savings fell by a hefty 10 points which suggested consumers were digging ⁠in to ⁠their savings accounts to pay for day-to-day ‌expenses, GfK said.

On Thursday finance minister Rachel Reeves announced further measures to offset ​the energy ​price shock triggered by the Iran war and ‌a closely watched survey of businesses suggested worries about a possible change in prime minister were also weighing on the economy. (Writing by William Schomberg, editing by Andy Bruce)