Consumer confidence ticks up but outlook remains unsettled
By Abigail Townsend
Date: Friday 24 Mar 2023
(Sharecast News) - Consumer confidence nudged higher in March, a closely-watched survey showed on Friday, despite ongoing cost of living pressures.
The latest GfK Consumer Confidence Index was -36, up two points on February and the third consecutive month it has strengthened.
Within that, expectations for the general economic situation over the next 12 months rose three points to -40, while the major purchase index increased by four to -33.
However, expectations for households' personal finance situation fell by three points to -21. It remains three points weaker than March 2022.
Joe Staton, client strategy director at GfK, said: "The small improvement in the overall index score masks continuing concerns among consumers about their personal financial situation. This measure best reflects the financial pulse of the nation, and it remains weak.
"Forecasts that headline inflation will fall this year have proved premature, wages are not keeping up with rising prices, and the cost of living crisis remains a stark reality for most.
"The recent budget will bring relief to come sections of the population, but for now, many people are simply looking to survive day-by-day."
On Wednesday, data showed that consumer price inflation had risen in February to 10.4%. Most analysts, as well as the Bank of England, had expected it to fall from 10.1% to 9.9%. The Bank of England, meanwhile, increased interest rates on Thursday by 25bps to 4.25%.
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