Consumer confidence rallied for a third straight month in February as wages and house prices rose, unemployment remained low and inflation stayed stable.
Although consumer confidence remained in negative territory at -7 for February, that represented a two-percentage-point increase from January, according to the latest data from GfK.
Sentiment surrounding the UK’s general economic situation over the next 12 months improved five points month to month to -23. That marked a 10-point improvement year on year.
Consumer sentiment towards their personal finances over the next 12 months stayed flat at 6, whereas over the last 12 months it fell two points to -1.
In an added fillip to big-ticket retailers, the major purchase index jumped five points in the month to 6.
GfK client strategy director Joe Stanton said: “Against a February backdrop of rising wages and house prices, low unemployment and stable inflation, we report another healthy uptick in consumer confidence this month – the third monthly increase in a row.
“Although the index remains south of positive, the trajectory remains upwards. The only ‘known unknown’ is the potential impact of coronavirus on behaviour, confidence and spending patterns. This is a developing story, watch this space.”
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