Consumer confidence stays unchanged in March
Consumer confidence has remained unchanged in March despite people feeling more optimistic about the future of their personal finances.
The overall score in GfK’s long-running Consumer Confidence Index has stayed at -21 this month.
While the measure for expectations for the general economic situation over the next 12 months has increased by one point to -23, the forecast for personal finances over the same period is up two points at +2, which is 23 points higher than this time last year.
Joe Staton, client strategy director GfK, said: “The improved personal finance measure (next 12 months) at +2 is encouraging because it’s the first positive and the highest score since December 2021. This is welcome news given the challenges faced by Britons of fiscal drag, higher costs for fuel, rising council taxes and utilities eroding any increases in wages or other income.”
Meanwhile, the major purchase index is down two points to -27, which is six points higher than this month last year.
Staton added: “But is there a note of worry this month? Look back to last year and it’s clear the improvements in consumer confidence seen most months since January 2023 have vanished.
“Are we temporarily on pause, or are consumers about to press ‘reverse’? In the run-up to the next UK General Election, these are important questions for the future health of the economy.”
