GfK’s long-running consumer confidence index increased seven points in February to -38. All five measures were up in comparison to January.
Joe Staton, client strategy director, GfK said, “despite widely reported headwinds of inflation continuing to outstrip wage rises, and the ongoing household challenge from the cost-of-living crisis, consumers have suddenly shown more optimism about the state of their personal finances and the general economic situation, especially for the coming year.”
“While it's too early to talk about ‘green shoots of recovery’, the uptick across all measures should be welcomed. “
But he cautioned, “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.”
Confidence in the general economic situation over the next 12 months is up by 11 points but remains at negative 43 while confidence in personal finances looking ahead to the next 12 months increased by nine points to negative 18, which is four points lower than this time last year.
The major purchase index, an indicator of confidence in buying big ticket items, is up three points to negative 37 – 22 points lower than a year ago, GfK's latest update showed.