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UK consumer confidence rises in February, GfK survey shows

By Sean Farrell

Date: Friday 28 Feb 2020

UK consumer confidence rises in February, GfK survey shows

(Sharecast News) - UK consumer confidence improved for the third month in a row in February as rising wages and house prices shored up sentiment, a widely read survey showed.
GfK's index of consumer confidence rose to -7 from -9 in January as households' view of the wider economy brightened. The survey showed further progress from a score of -11 in December.

Optimism about the UK's general economic situation increased for the third month running. The uptick in sentiment covered the past 12 months and the next 12 months. People were less confident about their personal finances with the score for the last 12 months dipping to -1 from +1 a month earlier though the outlook for the next 12 months was unchanged.

The survey, carried out for the European Commission, confirmed figures for the UK released by the commission a day earlier that showed business and consumer confidence rising. After flatlining in the last quarter of 2019 the UK economy appears to be picking up amid greater short-term political stability.

However, GfK's research ended on 14 February - before fears began to ratchet up about the spread of the coronavirus outbreak in Europe. A severe outbreak in the UK could force businesses to close and prompt consumers to stay at home, threatening the economy's fragile upturn.

Joe Staton, client strategy director at GfK, said: "Against a February backdrop of rising wages and house prices, low unemployment and stable inflation, we report another healthy uptick in consumer confidence this month - the third monthly increase in a row.

"The rise in the overall index score is driven by our increasingly positive view on the state of the UK's general economy for both the past and the next 12 months. The only 'known unknown' is the potential impact of coronavirus on behaviour, confidence and spending patterns. This is a developing story, watch this space."



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