UK consumer confidence falls but optimism for year ahead remains

The overall index score for consumer confidence decreased by two points to -21 in February, according to the latest GfK Consumer Confidence Barometer.

Four indexes measuring consumer confidence were down, while one was unchanged compared with last month.

The index measuring consumers’ confidence in their personal financial situation over the past 12 months fell two points to -14.

Looking ahead to the next 12 months, it remained flat at zero, which is 18 points higher than this time last year.

Consumer confidence in the general economic situation over the past 12 months decreased by two points to -43 and decreased by three points to -24 when looking at the next 12 months.

The major purchase index fell five points to -25, while the savings index over the next 12 months increased by two points – 10 points higher than this time last year. 

Joe Staton, client strategy director at GfK, said: “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.”