Consumer confidence drops to 13 month low
Consumer confidence has fallen in February as people worry about prices rises, increased taxes and interest rate hikes.
According to GfK’s long running Consumer Confidence Index, there has been a drop of seven points to -26 which is the lowest headline score in 13 months.
While GfK’s index measuring expectations for the general economic situation over the next 12 months has dropped by 11 points to -43, the forecast for people’s personal finances over the same period has declined by 12 points to -14.
Meanwhile, the major purchase index has decreased by five points to -15 in February, although this is four points higher than the same month last year.
Joe Staton, client strategy director GfK, said: “There’s clear anxiety in these findings as many consumers worry about balancing the household books at the end of the month without going further into debt. Slowing consumer spend slows the wheels of the UK economy so this is unwelcome news. And the good news on the easing or lifting of Covid restrictions around the UK seems to be doing little to lift the public’s mood.”
