Consumer confidence marginally improves but mood remains ‘fragile’

The overall index score edged up one point to -19. Two measures were up, two were down and one remained the same compared to February, according to the latest GfK consumer confidence survey.

The personal finance situation index in the past 12 months fell two points to -9 but is four points better than in March 2024.

The outlook for personal finances in the next year is down one point to +1. 

The general economic situation over the last 12 months also increased two points to -42, three points better than March 2024.  Expectations for this measure over the next year improved two points to -29.

The major purchase index was unchanged at -17 and was 10 points better than the same time last year.

GfK consumer insights director Neil Bellamy said: “Consumer confidence remains subdued with a headline score of -19 for March. Views on personal finances for the past year are slightly down from -7 to -9, while perceptions of the wider economy over the last 12 months and looking ahead a year are each up two points at -42 and -29 respectively.

“But this is only a marginal improvement. 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.

“If consumer confidence were a patient languishing in a hospital bed, a doctor would say there is little evidence of a recovery 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.”