Consumer confidence increased marginally in March

Latest data from GfK’s consumer confidence index showed that it increased by one point in March to minus 19, despite analysts expecting a drop.

Sentiment about the performance of the UK economy over the past year and its potential to gather momentum in the coming year improved in March.

However, consumers became slightly more pessimistic about their personal finances over the next 12 months. The index measuring changes in personal finances during the last year is down two points at -9; this is four points better than March 2024.

The forecast for personal finances over the next 12 months is down one point at +1, which is one point worse than this time last year.

Expectations for the general economic situation over the next 12 months have improved two points to -29; but this is six points worse than March 2024.

Neil Bellamy, Consumer Insights Director, NIQ GfK, said “Consumer confidence remains subdued with a headline score of -19 for March. Views on personal finances for the past year are slightly down from -7 to -9, while perceptions of the wider economy over the last 12 months and looking ahead a year are each up two points at -42 and -29 respectively. But this is only a marginal improvement.

“Since September last year, the headline has been in a range of -17 to -22. This is more positive than mid-2022 into early 2023 at the height of the cost-of-living crisis, which delivered the worst headline scores ever including nine months at -40 or worse. But we are still below the long-term average of -10. If consumer confidence were a patient languishing in a hospital bed, a doctor would say there is little evidence of a recovery as yet. Where do we go from here? The current stability is to be welcomed but it won’t take much to upset the fragile consumer mood.”