GfK’s long-running Consumer Confidence Index has edged up by one point to -19 in March, signalling a modest improvement in sentiment among UK consumers. The overall score masks a mixed picture, however, with two of the five key measures rising, two falling, and one holding steady compared to February.
Confidence in personal finances has taken a slight knock. The index tracking changes over the past 12 months dropped by two points to -9, though this remains four points higher than in March 2024. Looking ahead, the outlook for personal finances over the next year slipped by one point to +1 — a marginal but notable decrease, and one point below the same period last year, NIQ GfK said in a release.
There were more optimistic signals regarding the UK’s general economic situation. The measure for the past year improved by two points to -42, showing a three-point gain compared to a year ago. Expectations for the economy over the next 12 months also rose by two points to -29. However, this remains six points worse than March 2024.
The Major Purchase Index remained unchanged at -17. Yet compared to March 2024, this represents a ten-point improvement.
In contrast, the Savings Index saw a sharp five-point fall, dropping to +25. This matches its level from the same period last year.
“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,” said Neil Bellamy, Consumer Insights director, NIQ GfK.
GfK’s Consumer Confidence Index edged up to -19 in March, reflecting a mixed sentiment.
Personal finance confidence dipped, while economic outlook improved slightly.
The Major Purchase Index held at -17 but showed a year-on-year gain.
The Savings Index fell five points to +25.
Despite modest gains, consumer confidence remains fragile and below the long-term average, NIQ GfK noted.
Fibre2Fashion News Desk (HU)
