Consumer confidence falls amid concerns about personal finances
Consumer confidence has declined in February as people feel more concerned about their personal finances and making major purchases.
GfK’s Consumer Confidence Index has dropped three points to -19 this month, with the personal finances forecast for the year ahead falling four points to 2 to match last year’s score.
Subscribe to TRBThe major purchase index also declined by four points to -14, while expectations for the general economic situation over the next 12 months held steady at -31, unchanged from both January and a year ago.
Neil Bellamy, consumer insights director at GfK, an NIQ Company, said: “Although the rate of inflation is easing, prices continue to rise, forcing many households to prioritise day-to-day spending over longer term needs.
“Views on the broader economy remain firmly in negative territory, with consumers anticipating only limited economic growth this year.
“Unemployment has now reached its highest level in nearly five years, and this is increasing concerns about job security, particularly given the backdrop of weak wage growth.
“With fewer entry level opportunities available, those on lower incomes are already feeling the strain, and this trend risks undermining the typically more optimistic outlook held by younger age groups.”
