Consumer confidence stalled in March as the gains seen since since January 2023 “vanished”.
GfK’s long-running Consumer Confidence Index stayed at -21, following a two-point dip last month.
Meanwhile, the major purchase index, a measure of confidence in buying big ticket items, fell two points to -27, although it remains six points higher than a year ago.
Expectations for the general economic situation over the next 12 months increased by one point to -23, – 17 points better than last March.
The forecast for personal finances over the same period saw an “encouraging” two-point rise to +2, which is 23 points higher than this time last year.
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GfK client strategy director Joe Staton said: “The improved personal finance measure (next 12 months) at +2 is encouraging because it’s the first positive and the highest score since December 2021. This is welcome news given the challenges faced by Britons of fiscal drag, higher costs for fuel, rising council taxes and utilities eroding any increases in wages or other income.”
“But is there a note of worry this month? Look back to last year and it’s clear the improvements in consumer confidence seen most months since January 2023 have vanished.
“Are we temporarily on pause, or are consumers about to press ‘reverse’? In the run-up to the next UK General Election, these are important questions for the future health of the economy.”
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