UK consumer confidence eases in February - GfK

22nd Feb 2024 07:48

(Sharecast News) - Consumer confidence faltered in February, a closely-watched survey showed on Friday, as concerns about the economy continued to weigh heavily.

According to the latest GfK consumer confidence barometer - which has been running since January 1974 - the overall index fell two points to -21.

Within that, the measure for the general economic situation over the last 12 months dipped two points to -43, while the gauge for the outlook for the coming year fell three points, to -24.

The major purchase index was also lower, off five points at -25.

However, respondents did appear marginally more confident about how their personal finances would fare over the coming months, with the measure unchanged on January at 0.

While the measure has yet to move into positive territory, GfK said, it is a notable improvement on the -18 recorded in February 2023.

Joe Staton, client strategy director at GfK, said: "The 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."

He continued: "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."

The highest-score ever achieved by the consumer confidence barometer was 21 in January 1978, while the lowest was -49 in September 2022.

The largest monthly drop occurred in March 2020, at the start of the first Covid-19 lockdown, when it plunged 25 points.

The most recent survey of 2,003 individuals aged 16 and over was conducted between 1 and 15 February.