UK consumer confidence decreased two points in February as four measures were down.
According to the latest GfK Consumer Confidence Index, overall figures fell two points to -21 in February. Four measures were down and one was unchanged in comparison to last month’s announcement.
The Major Purchase Index, which includes big ticket items such as furniture, is down five points to -25; this is 12 points higher than this month last year.
The measure for the general economic situation of the country during the last 12 months is down two points at -43; this is 22 points higher than in February 2023.
The index measuring changes in personal finances during the last year is down two points at -14; this is 12 points better than February 2023.
The Savings Index has increased two points to +29 in February; this is 10 points higher than this time last year.
Joe Staton, Client Strategy Director, GfK, says: “There’s a mixture of bad news and good news for February. The bad news is that the improvement in the Overall Index Score seen over recent months stalled slightly in February due to a fall across most measures. However, the good news is that optimism for our personal financial situation for the next 12 months has not slipped back. Although registering again at zero, this is a significant improvement on the -18 score from February last year.
“This metric is key to understanding the financial mood of the nation because confident householders are more likely to spend despite the cost-of-living crisis. Looking forward, it will be interesting to see what the forthcoming Budget delivers in terms of taxation and inflation. These are important issues to everyone – especially in an election year.
“The recent performance of the economy will play a crucial role in determining results at the ballot box. All the measures this February are better than a year ago, but consumer confidence alone will not carry us into a brighter economic future.”
