Consumer confidence boosted in February as vaccine rollout continues

The GfK consumer confidence index rose by five points to -23 in February, boosted by a significant increase in hopes for the UK economy.

With the vaccination programme underway and the hope that a roadmap out of lockdown will soon be laid out by the government, consumer confidence in the economic situation over the next 12 months jumped 14 points to -30, just nine points lower than in February 2020.

The survey also found consumer sentiment over their personal finances for the year ahead inched up two points to +4, only two points lower than a year ago.

Consumer confidence in personal finances for the previous year remained the same at -8.

The major purchase index also rose five points to -19 for February.

GfK client strategy director Joe Staton said: “With the headline confidence score up by five points this month, driven by an energetic 14-point jump in how we view the economy for the coming year, it would be tempting to talk of a return to normality.

“But would it be more realistic to talk of challenges? We need to be cautious because the positive tailwinds of the vaccination rollout are being met by the very strong headwinds of unemployment, the threat of inflation and the difficulty that many face in affording day-to-day living costs – all serious issues that can dampen consumer confidence.

“Perhaps the key lies in the healthier score for how we see our personal finances going forward as this will impact our spending plans that, in turn, will fuel the post-pandemic economy. That measure is up two points and is reinforced by an encouraging five-point boost for major purchase intentions.

“But will that confidence in our wallets continue through the balance of the lockdown and beyond?”