Consumer confidence edges up in April
New data has revealed that consumer confidence has edged up in April as people look forward to an improved economy later in the year.
GfK’s long running Consumer Confidence Index has risen by 1% in the month to -15.
Breaking down the figures, the index measuring the forecast for people’s personal finances over the next 12 months remained the same as last month at +10, while the index measuring expectations for the general economic situation over the coming 12 months has improved by six points to -11. This is 45 points higher than April 2020.
Joe Staton, client strategy director at GfK, said: “Confidence has edged up one point in April with consumers taking a more guarded view on the future. The picture for personal finances in the coming year remains strong at +10 and there is another big uptick in our view of the general economic situation in the next 12 months, with a six-point boost in April following the 13-point increase in March and the 14-point jump in February. This clear trend of growing confidence reflects the forecast of a rebound for our economy during the second half of the year.”
However, GfK’s major purchase index has decreased by one point to -12 in April, although this is 40 points higher than it was in the same month last year.
Staton added: “The improvement in the consumer mood since January is welcome but the pandemic has hit household finances hard and, on the road ahead, we will still see concerns over new variants, rising inflation and the debt overhang. Nevertheless, there’s every chance that as the recovery gains momentum and the numbers get stronger, confident consumers will continue to spend and drive the wheels of UK finances into the summer and beyond.”
