United Kingdom: Consumer confidence deteriorates in February
Consumer confidence came in at minus 26.0 in February, down from January’s minus 19.0. February’s result marked the worst reading since January 2021. As a result, the index remained entrenched below the 0-point threshold, and indicated pessimism among consumers. The decline came amid elevated Covid-19 cases due to Omicron, and high inflation.
The fall was due to a broad-based deterioration in consumers’ outlook, with views of their financial situation and the general economic situation over the next 12 months both tumbling. In addition, consumers’ willingness to make major purchases weakened.
Regarding the reading, Joe Staton, GfK’s client strategy director, stated:
“There’s clear anxiety in these findings as many consumers worry about balancing the household books at the end of the month without going further into debt. Slowing consumer spend slows the wheels of the UK economy so this is unwelcome news. And the good news on the easing or lifting of Covid restrictions around the UK seems to be doing little to lift the public’s mood.”