Consumer confidence improves in February
New figures have shown that consumer confidence has risen in February as the Covid-19 vaccination programme continues at pace and people feel more optimistic about prospects for the economy.
GfK’s long-running Consumer Confidence Index has increased by five points to -23.
Commenting on the figures, Joe Staton, GfK’s client strategy director, said: “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.”
GfK’s index measuring expectations for the general economic situation over the next 12 months jumped by 14 points to -30 while the forecast for people’s personal finances over the same period rose by two points to 4. Meanwhile, the major purchase index increased by five points -19.
Staton added: “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?”
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