United Kingdom: Consumer confidence records worst reading since November 2020 in March
Consumer confidence came in at minus 31.0 in March, down from February’s minus 26.0 and marking the fourth consecutive monthly drop. March’s result marked the weakest sentiment since November 2020. As a result, the index remained entrenched below the 0-point threshold, and indicated pessimism among consumers.
The fall came on the back of a deterioration in consumers’ views of the general economic situation over the next 12 months. In addition, consumers’ sentiment regarding their financial situation over the next 12 months weakened. Consumers also grew more downbeat regarding current personal and general conditions, and became less willing to make major purchases.
Regarding the reading, Joe Staton, GfK’s client strategy director, stated:
“Consumers across the UK are experiencing the impact of soaring living costs with 30-year-high levels of inflation, record-high fuel and food prices, a recent interest-rate hike and the prospect of more increases to come, and higher taxation too – all against a background of stagnant pay rises that cannot compensate for the financial duress.”