Consumer confidence rebounds despite looming financial concerns

The UK consumer confidence index has increased ahead of expectations by seven points in February, according to consumer goods data analyst GfK. 

The index analyses five scores: the personal financial situation over the past and next year, general economic situation over the past and next year, and the major purchase index. Reportedly all five measures were up in comparison to the January 20th announcement.

The measure for the general economic situation of the country during the last 12 months is up six points at -65, which is 15 points lower than in February 2022. For the next year, the index is expected to go up 11 points and reach -43.

The index measuring changes in personal finances during the last 12 months increased five points to -26, which is 15 points worse than February 2022. The forecast for the year ahead is for the index to increase by nine points and reach -18. 

The Major Purchase Index is up three points to -37, which is 22 points lower than this month last year.

This month’s consumer survey was conducted on a sample of 2,000 individuals and interviews have been conducted between 1st and 13th of February. GfK has conducted this study since 1974. 

Joe Staton, client strategy director of GfK, believes that despite the cost of living crisis, people have started to show more optimism regarding their personal finances and the general economic situation.

He said: “The headline consumer confidence score is still severely depressed and the mood as well as the economy remain a long way off pre-lockdown levels, but a little consumer resilience might be what we need to soften any downturn in 2023. However, many challenges remain and this may be nothing more than a bubble of hope – and bubbles always burst.”