Consumer confidence jumps in April
UK consumer confidence has jumped this month, despite the rising cost of living, as people feel more positive about the economy and their personal finances.
GfK’s Consumer Confidence Index has increased by six points to -30 in April to reach its highest point in 13 months.
Joe Staton, client strategy director GfK, said: “As food and energy prices continue to rise, and inflation eats into wages, the cost-of-living crisis is a painful day-to-day reality for many. But are all consumers buckling under the pressure? On the evidence of April’s confidence figures, the answer is no. Instead, there’s a sudden flowering of optimism with big improvements across the board.”
While the index measuring the forecast for personal finances over the next 12 months has increased by eight points to -13, the index for expectations for the general economic situation for the same period has risen by six points to -34.
GfK’s major purchase index has also improved with an uplift of five points to -28.
Staton said: “The brighter views on what the general economy has in store for us, with April’s six-point rise cementing a 20-point improvement since January, could even be seen as the proverbial ‘green shoots of recovery’.
“Moreover, the major purchase index at -28 is higher than it has been for a year and will bring much-needed cheer to retailers as we head into summer.”