UK Consumer confidence stagnates in March

UK Consumer confidence has remained flat at -21 in March following a two point drop last month, according to data from GfK.

Moreover, the major purchase index fell two points down to -27 but this figure remains six points higher than this time last year.

Consumer expectations for the general economic situation over the next year rose by one point to -23, – 17 points better than last March.

Furthermore, the personal finances forecast also rose 2 points up to +2, a 23 point increase from this time last year.

Joe Staton, client strategy director, said: “Consumer confidence stalled at minus -21 in March, following the two-point dip in February. The improved Personal Finance measure (next 12 months) at +2 is encouraging because it’s the first positive and the highest score since December 2021.

“This is welcome news given the challenges faced by Britons of fiscal drag, higher costs for fuel, rising council taxes and utilities eroding any increases in wages or other income. But is there a note of worry this month? Look back to last year and it’s clear the improvements in consumer confidence seen most months since January 2023 have vanished.”

He added: “Moreover, this month the Major Purchase Index has dropped two points, the view of the wider economy over the past year is down and the Savings Index has dived four points. Are we temporarily on pause, or are consumers about to press ‘reverse’? In the run-up to the next UK General Election, these are important questions for the future health of the economy.”