GfK’s consumer confidence figure was unchanged during March, with a reading of -21, having fallen by two points in February. However, there are some signs of cautious optimism as falling inflation starts to feed through to consumer’s finances.
The latest index shows three measures were up and two were down in comparison to last month’s announcement.
Joe Staton, Client Strategy Director at GfK, noted that the improved Personal Finance measure (next 12 months) was encouraging because it’s the first positive and the highest score since December 2021. “This is welcome news given the challenges faced by Britons of fiscal drag, higher costs for fuel, rising council taxes and utilities eroding any increases in wages or other income,” he said.
However, he highlighted that there was a note of worry in this month’s data. “Look back to last year and it’s clear the improvements in consumer confidence seen most months since January 2023 have vanished,” Staton said.
“Moreover, this month, the Major Purchase Index has dropped two points, the view of the wider economy over the past year is down, and the Savings Index has dived four points. Are we temporarily on pause, or are consumers about to press ‘reverse’? In the run-up to the next UK General Election, these are important questions for the future health of the economy.”
NAM Implications:
- Much depends on how this plays out in the aisle…
