UK consumer confidence inches up in April

The overall index score for consumer confidence increased by two points to -19 in April, according to the latest GfK Consumer Confidence Barometer.

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

The index measuring consumers’ confidence in their personal financial situation over the past 12 months was up by two points to -11.

When looking ahead to the next 12 months, the index measuring consumers’ confidence in their personal finances remained flat at 2, which was 15 points higher than this time last year.

Consumer confidence in the general economic situation over the past 12 months increased by four points to -41 and increased by two points to -21 when looking at the next 12 months.

The major purchase index rose by two points to -25, while the savings index over the next 12 months increased by one point to 26 – seven points higher than it was this time last year. 

Joe Staton, client strategy director for GfK, says: “Headline confidence edged forward in April to -19. There was a welcome repeat of the March +2 score for how consumers feel about their personal finances in the next 12 months.

“While the overall index score remains negative, all of the underlying five measures this April are significantly better than they were last April. These improvements reflect the impact on household budgets of lower inflation and the anticipation of further tax cuts.

“However, we are a long way from the much firmer sentiment last seen in the period before Brexit, Covid and the conflict in Ukraine.

“There is a lot of ground to make up and caution is needed in the face of continuing economic and fiscal challenges, and revised views on when the Bank of England might cut borrowing costs. But spring has arrived and maybe consumer confidence is, at last, slowly becoming brighter and heading in the right direction.”