Consumer confidence boosted by hopes for economy

GfK’s long-running Consumer Confidence Index finds four measures of confidence increased from 22 January and one measure was flat.

Joe Staton, GfK’s client strategy director, said: “With the headline confidence score up by five points this month, driven by an energetic 14-point jump in how we view the economy for the coming year, it would be tempting to talk of a return to ‘normality’. But would it be more realistic to talk of challenges? We need to be cautious because the positive tailwinds of the vaccination roll-out are being met by the very strong headwinds of unemployment, the threat of inflation, and the difficulty that many face in affording day-to-day living costs – all serious issues that can dampen consumer confidence.

“Perhaps the key lies in the healthier score for how we see our personal finances going forward as this will impact our spending plans that in turn will fuel the post-pandemic economy. That measure is up two points and is reinforced by an encouraging five-point boost for major purchase intentions. But will that confidence in our wallets continue through the balance of the lockdown and beyond?”

The UK Consumer Confidence Barometer is conducted among a sample of 2,000 individuals aged 16 and over on behalf of the European Commission.