GfK’s consumer confidence report, which measures members of the public attitudes, declined 21 points in February down from 19 points the previous month
UK consumer confidence fell two points in February as reports of a technical recession dampened hopes.
GfK’s consumer confidence report, which measures members of the public attitudes, declined 21 points in February down from 19 points the previous month.
January’s reading was the highest in more than two years as Brits became more hopeful about dropping inflation, but it has now dropped again.
Its major purchase index also dropped five points on last month’s reading.
Joe Staton, client strategy director at GfK, said there is “a mixture of bad news and good news for February”.
Respondents’ attitudes towards their personal finances improved again, increasing 14 points in the month, up from 12 in January and 26 in the same period last year.
The good news is that optimism for our personal financial situation for the next 12 months has not dropped, he said.
This month it was revealed the UK slipped into a technical recession in the final quarter of 2023.
Nonetheless, there are hopes that hurdles which prohibit customers losing their purse strings like high energy bills and inflation will improve this year.
It is anticipated that energy bills, which have soared in the past two years due to global conflicts, will drop to their lowest levels since 2022.
UK chancellor, Jeremy Hunt, will also present his Spring Budget in March, which is rumoured to dish out further relief on personal taxes.
Linda Ellett, UK head of consumer, retail and leisure for KPMG, noted: The reality for many households remains adapting spend to meet higher essential costs, with stubborn inflation further fuelling in-contract price rises for the likes of mobile and broadband.
She added: Many households also still face higher mortgage rates when their fixed-term deal ends this year – and while rates have dropped compared to what they were a few months back, those consumers will still see a considerable rise in their monthly payment compared to what they were paying.