Consumer confidence rises

The GfK consumer confidence index has increased by two points to -20 over the month to mid-February, as households said they were becoming more optimistic about their personal finances and the economic outlook.

The research found that the better-than-expected findings were driven by the Bank of England’s latest interest rate cut earlier this month.

The data also found household savings and it found that UK households are prioritising saving over spending. They found that February was deemed a “good time to save” by a net 30 per cent of consumers.

Neil Bellamy, Consumer Insights Director, NIQ GfK, said “In contrast to last month when all five core measures were down, this month they are all up. The biggest improvement is in how consumers see their personal finances for the coming year with an increase of four points that takes this measure out of negative territory to +2. The Bank of England interest rate cut on February 6th will have brightened the mood for some people, but the majority are still struggling with a cost-of-living crisis that is far from over. Prices are still rising above the Bank of England’s target; gas and electricity bills remain a challenge for many households. So, it’s no surprise that consumer views on the general economic situation are still lower than 12 months ago, suggesting that people don’t expect the economy to show any dramatic signs of improvement soon. Politicians looking for bright spots on the horizon will be disappointed.”