After several months of improvement, GfK’s Consumer Confidence Index fell two points to -21 in February amid concerns about the economy after the UK entered recession. However, the outlook remains more positive as consumers look to better times ahead with regards to their personal finances.
The latest Index shows four measures were down and one was unchanged in comparison to last month’s announcement.
Joe Staton, Client Strategy Director at GfK, noted that despite the improvement in consumer confidence stalling in February, it was good news that optimism for people’s personal financial situation for the next 12 months had not slipped back. “Although registering again at zero, this is a significant improvement on the -18 score from February last year,” he said.
“This metric is key to understanding the financial mood of the nation because confident householders are more likely to spend despite the cost-of-living crisis.”
Looking forward, Staton highlighted that it will be interesting to see what the forthcoming Budget delivers in terms of taxation and inflation. “These are important issues to everyone – especially in an election year,” he said.
“The recent performance of the economy will play a crucial role in determining results at the ballot box. All the measures this February are better than a year ago, but consumer confidence alone will not carry us into a brighter economic future.”
NAM Implications:
- Despite four years having elapsed since the first lockdown…
- …these are still uncertain times for consumers.
- And those still in employment have become very savvy re all purchases.
- i.e. they are unlikely to be an easy sell for the foreseeable future…
- Moreover, they are unlikely to be as easily seduced by Budget ‘giveaways’ as in former, more trusting eras…
