STORY
Business and consumer confidence remained subdued in May, although some indicators showed a modest improvement, according to a House of Commons Library economic briefing. The briefing said that, in the two weeks ending 17 May 2026, 16.7% of businesses responding to the ONS Business Insights and Conditions Survey expected their performance to increase over the next 12 months, while 16.8% expected it to decrease. Confidence surveys are watched closely because they are often published before official economic data and can provide early indications of changes in the wider economy.
The CBI Industrial Trends Survey also suggested that manufacturers remained cautious. In May, more manufacturers expected output to fall over the next three months than expected it to rise, with a balance of -13%. This was an improvement on April’s figure of -20%, but still pointed to continuing weakness in expectations for industrial output.
Consumer confidence also remained negative, despite improving slightly. The GfK Consumer Confidence Index rose to -23 in May, up two points from April, which had been the lowest level since October 2023. The index measures expectations about the general economic situation, household finances and views on making major purchases.