The latest data from the GfK Consumer Confidence Index reveals that consumer sentiment in the UK is on the upswing, particularly in the retail sector. In March, the index saw a significant increase of seven points, bringing it to -16. This boost in confidence is reflected across all five key measures of the index, signaling a positive trajectory for the future.
One of the most encouraging trends is the improved outlook on personal finances among Britons. The forecast for personal finances over the next year has risen by six points to +10, a notable increase from the previous year. While there is still room for growth, the positive shift is evident in the index measuring changes in personal finances over the last 12 months, which has also seen a six-point increase to -2.
However, concerns remain about the general economic situation over the past year, with the index for this measure standing at -60, a significant decrease from the same time last year. Looking ahead, there is more optimism as expectations for the general economic situation over the next 12 months have increased by 13 points to -17.
The Major Purchase Index has seen an eight-point improvement in March, indicating that consumers are more willing to make significant purchases. Similarly, the Savings Index has also risen by two points to +21, showing a positive trend compared to last year.
According to Joe Staton, GfK’s Client Strategy director, the recent Budget announcements, successful vaccine rollout, and the roadmap to end lockdown have all contributed to the improved consumer sentiment. With all measures showing growth in March, there is hope for a robust economic recovery if this positive trend translates into increased spending.
In light of these developments, the outlook for consumer confidence in the UK looks promising for the next six months and beyond.
For more information on consumer confidence and economic trends in the UK, visit Office for National Statistics and Bank of England Agents’ Summary.
