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Economy

UK consumer confidence rises in March

GfK’s Consumer Confidence Index revealed that consumer confidence in the country has increased by seven points over the period on its monitor

Consumer confidence in the UK is on the rise, according to GfK’s monthly Consumer Confidence Index, as consumer confidence has increased by seven points on its monitor since last month.

GfK’s index examines five key measures in economic confidence in regards to consumers, including their financial situation over the past 12 months, financial situation over the next 12 months, general economic situation over the past 12 months, general economic situation over the next 12 months and what their recent major purchases have been.

Consumers’ forecast for their personal finances over the next year is up six points, at +10, which is seven points higher than last year.

Furthermore, their expectations for the general economic situation over the next 12 months have increased by 13 points to -17, which is ten points higher than the index’s score in March 2020.

Joe Staton, GfK’s client strategy director, said: “Spring is in the air on the back of well-received Budget announcements, the successful vaccine roll-out and roadmaps in place for ending lockdown.

“All measures jumped in March with the Overall Index Score up a robust seven points to -16. This marks an improvement each month into 2021. The scores looking ahead one year are recovering especially well.”

He added: “The personal finance measure for the next 12 months is now at +10, which is the first time in three years it has been this high. Our measure on economic prospects for the next 12 months is also up 13 points to -17, a strong result following February’s equally strong 14-point boost.

“If this improved mood translates into spending, it might help reverse some of the economic damage the UK has suffered. And the eight-point fillip in our major purchase measure to the new level of -11 suggests this may well happen.”

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