Consumer confidence levels now 36 points higher than five years ago
In February, the high morale of the British consumer maintained January’s five-month high, according to the latest UK consumer index figures from GfK.
The Confidence Index stayed at 1, while the propensity to make a big purchase fell one point this month to 4; although this is 15 points higher than February 2014.
The personal finances of British consumers decreased one point in February to -3, but there are clear signs the economy is improving, with personal finances 10 points higher than the previous year.
“Unless there is some dramatic change in the indicators that get media coverage, or people start feeling significantly better off as inflation edges towards 0, it is hard to see any major change between now and the election,” said Nick Moon, MD of social research at GfK.
Today’s figures represents a reversal from December’s nine-month low of -4 as consumers spent carefully over the festive period.
However, Moon thinks it was a one off and that consumers are ready to spend again. “The drop to -4 in December is looking more like a discrepancy,” he added.
“Looking back at historic figures, it’s worth thinking about how the mood was five years ago, In Feb 2009, we had an overall index figure of -35, which is hugely different to the figures we are seeing in recent months.”