Alongside today’s release of better-than-expected retail sales figures, GfK’s long-running Consumer Confidence Index suggests people were slightly more positive about the economy and their personal finances this month.
Despite widespread warnings that businesses may have to cut staff and raise prices because of impending tax and wage rises, the overall index showed a two-point rise to –20 in February.
All measures were up in comparison to last month’s announcement:
The biggest improvement was in how consumers see their personal finances for the coming year, with GfK suggesting that the recent interest rate cut brightened the mood for some people.
However, Neil Bellamy, Consumer Insights Director, NIQ GfK, noted that the majority of households are continuing to struggle with the high cost of living.
“Prices are still rising above the Bank of England’s target; gas and electricity bills remain a challenge for many households,” he said. “So, it’s no surprise that consumer views on the general economic situation are still lower than 12 months ago, suggesting that people don’t expect the economy to show any dramatic signs of improvement soon. Politicians looking for bright spots on the horizon will be disappointed.”
