Consumer confidence edges up but remains fragile
Consumer confidence has improved slightly in March as people feel more optimistic about the economy but less so about their personal finances.
According to GfK’s Consumer Confidence Index, it has risen by one point to -19 but remains fragile.
Neil Bellamy, consumer insights director at NIQ GfK, said: “Since September last year, the headline has been in a range of -17 to -22. This is more positive than mid-2022 into early 2023 at the height of the cost-of-living crisis, which delivered the worst headline scores ever including nine months at -40 or worse. But we are still below the long-term average of -10.”
While the measure for expectations for the general economic situation over the next 12 months has improved by two points to -29, the forecast for personal finances over the same period is down one point at +1, which is one point worse than this time last year.
Never Miss a Retail Update!Meanwhile, the Major Purchase Index is unchanged at -17; this is ten points better than a year ago.
Bellamy added: “If consumer confidence were a patient languishing in a hospital bed, a doctor would say there is little evidence of a recovery as yet. Where do we go from here? The current stability is to be welcomed but it won’t take much to upset the fragile consumer mood.”
