Consumer confidence improves this month
Consumer confidence has risen in February as people feel more optimistic about their personal finances, although their views on the economy are lower than a year ago.
GfK’s long running Consumer Confidence Index has shown a two point uptick this month to -20.
Neil Bellamy, consumer insights director, NIQ GfK, said: “In contrast to last month when all five core measures were down, this month they are all up.
“The biggest improvement is in how consumers see their personal finances for the coming year with an increase of four points that takes this measure out of negative territory to +2.
Never Miss a Retail Update!“The Bank of England interest rate cut on February 6th will have brightened the mood for some people, but the majority are still struggling with a cost-of-living crisis that is far from over.”
Looking at GfK’s measure for expectations for the general economic situation over the next 12 months, this has improved by three points to -31. However, this is seven points lower than in February 2024.
Bellamy added: “Prices are still rising above the Bank of England’s target; gas and electricity bills remain a challenge for many households. 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.”
Meanwhile, GfK’s major purchase index has risen by three points to -17, which is eight points better than this month last year.
The news comes as the Office for National Statistics reported that UK retail sales rose by a better than expected 1.7% in January after a difficult Christmas.
