UK consumer confidence: some shoots of spring amid the gloom

UK consumer confidence increased by two points in March, according to the GfK consumer confidence index, as optimism about the broader economy conceals concerns about personal finance.

Why it matters

Though GfK’s figures, a sample of 2,000 individuals aged 16 and up, point to some improvements in buyer confidence, it is an increase from a very low point in January and February, and still a lot lower than the picture in March 2022 – so it’s important to understand that confidence remains weak.

However, there is some movement in perceptions of the general economic situation for the coming year, as well as in the major purchase index. It may provide some encouragement to brands thinking about building for future demand.

What’s going on

• The personal financial situation for the past year remains flat on February’s figure, while for the next 12 months, the view of personal finances is down three points year-on-year.
• Perceptions of the broader economy have seen a slight increase of three points for the past year and three points for the year ahead. Critically, this is nine points better than March 2022.
• Willingness to make a major purchase creeps up versus February, but is still way below March last year.
• Respondents feel that now is a good time to be saving money, up three points on March 2022.

Key quote

“A small improvement in the Overall Index Score this month masks continuing concerns among consumers about their personal financial situation,” explains Joe Stanton, client strategy director at GfK, in a statement.

For now, “many people are simply looking to survive day-by-day. Just having enough money to live right and pay the bills remains the number one concern for consumers across the UK.”

Sourced from GfK