Despite the continued cost of living challenges, consumer confidence bounced back from historic lows in February as optimism grew on the outlook for 2023.
GfK’s Consumer Confidence Index increased seven points this month to -38, with all five measures up in comparison to January’s figures:
Whilst inflation continues to outstrip wage rises and impacts consumers’ spending power, the study shows that people are more optimistic about their personal finances and the general economic situation, especially for the coming year.
“While it’s too early to talk about ‘green shoots of recovery’, the uptick across all measures should be welcomed,” said Joe Staton, Client Strategy Director at GfK.
“But what’s happening? Are people simply fed up with hearing bad news? Do they see a milder recession than the pundits predicted? Do they sense the most worrying phase of the energy crisis is over? The headline consumer confidence score is still severely depressed and the mood as well as the economy remain a long way off pre-lockdown levels, but a little consumer resilience might be what we need to soften any downturn in 2023. However, many challenges remain and this may be nothing more than a bubble of hope – and bubbles always burst.”
