Consumer confidence down in February
New figures have revealed that consumer confidence fell in February as consumers became more concerned about their personal financial situation.
GfK’s long-running Consumer Confidence Index decreased by one point to -6.
Joe Staton, head of market dynamics at GfK, said: “Against a backdrop of rising food and fuel prices, sterling depreciation, nominal earnings growth and a burgeoning fear of rapid inflation, concern about our personal financial situation for 2017 has contributed to a drop in UK consumer confidence this month. Any momentum behind the post-Brexit, debt-fuelled, consumer-spending boom now appears to be softening.”
The index relating to the forecast for personal finances over the next 12 months decreased by four points to 3.
The measure relating to expectations for the general economic situation over the next 12 months increased by three points to -20. This is eight points lower than in February 2016.
Meanwhile, the major purchase index fell by five points to 5. This is seven points lower than the same month last year and follows a drop of two points in January.
Staton added: “Mounting pressures on disposable income are starting to bite as witnessed by two months of falling retail sales (ONS) and a further drop in the Major Purchase Index (this month down by five points). Consumer spending continues to drive economic growth in the UK so any further fall in confidence could support forecasts for a slowdown of the overall economy this year.”
