Consumer confidence in the UK climbed this month to its highest level in a year as people felt more optimistic due to the Covid-19 vaccine rollout and the prospect of the end of lockdown.
Data from GfK’s Consumer Confidence Index shows that the overall figure jumped seven points to -16 in March. All five measures used to generate the index increased over the previous month and follows an improving trend since the start of the year.
Joe Staton, GfK’s Client Strategy Director, commented: “Spring is in the air on the back of well-received Budget announcements, the successful vaccine roll-out and roadmaps in place for ending lockdown.”
He highlighted that the scores looking ahead one year are recovering especially well with the personal finance measure at a three-year high. The measure on economic prospects for the next 12 months also saw another big improvement following an equally strong jump last month.
“If this improved mood translates into spending, it might help reverse some of the economic damage the UK has suffered,” said Staton. “And the eight-point fillip in our major purchase measure to the new level of -11 suggests this may well happen. It’s highly likely this upward trajectory on all measures will build over the next six months and beyond.”
The data comes a day after the Bank of England said the easing of coronavirus restrictions meant consumer spending is likely to bounce back a bit more quickly than it previously thought, and that the rise in unemployment might not be as bad as feared.
