Consumer confidence rises to highest level since Ukraine invasion

24th April 2023

Consumer confidence recovered further in April, rising to its highest level since February 2022.

Confidence rose by six points to -30, with an improvement in all areas measured in the index by market intelligence company GfK. GfK’s long-running Consumer Confidence Index increased six points to -30 in April. All measures were up in comparison to last month’s announcement.

The index measuring changes in personal finances during the last 12 months is up five points at -21; this is two points worse than April 2022. The forecast for personal finances over the next 12 months increased eight points to -13, which is 13 points higher than this time last year.

Meanwhile, the measure for the general economic situation of the country during the last 12 months is up seven points at -55; this is five points higher than in April 2022. Expectations for the general economic situation over the next 12 months have increased by six points to -34; this is 21 points better than April 2022.

Commenting on the date Joe Staton, Client Strategy Director GfK, said “As food and energy prices continue to rise, and inflation eats into wages, the cost-of-living crisis is a painful day-to-day reality for many. But are all consumers buckling under the pressure? On the evidence of April’s confidence figures, the answer is no. Instead, there’s a sudden flowering of optimism with big improvements across the board. The eight-point jump in how we see prospects for our personal financial situation is a dramatic change that might suggest household finances are stronger than we thought. The brighter views on what the general economy has in store for us, with April’s six-point rise cementing a 20-point improvement since January, could even be seen as the proverbial ‘green shoots of recovery’. Moreover, the Major Purchase Index at -28 is higher than it has been for a year and will bring much-needed cheer to retailers as we head into summer. This is the third month in a row that confidence overall has improved; can we look forward to this momentum building for the year ahead?”