United Kingdom: Consumers remain down in the dumps in February
February 28, 2018
The GfK NOP consumer confidence indicator dipped from minus 9 points in January to minus 10 points in February. As a result, the index remains firmly entrenched in negative territory, where it has been since April 2016, highlighting that consumers are broadly pessimistic.
February’s downturn reflects consumers’ more pessimistic view of their personal financial situation and the general economic situation over the next 12 months, and a lower willingness to make major purchases. However, consumers grew less negative regarding their personal financial situation over the previous 12 months, while their view of the general economic situation over the previous 12 months was unchanged.
Commenting on the figures, Joe Staton, Head of Experience Innovation UK at GfK, said: “Ongoing concerns about sluggish household income, rising prices paid by consumers in the shops, and the prospect of inflation-busting council tax and interest rate hikes has dented confidence after last month’s surprising rally”.
Author: Oliver Reynolds, Economist