UK Consumer Confidence Rebounds Strongly - GfK

(RTTNews) - UK consumer sentiment improved in February from historic lows seen in the previous months to its highest level since April last year, as households were more optimistic about their personal finances and the future economic situation, despite headwinds from rising inflation, survey results from the market research group GfK showed on Friday.

The consumer confidence index rose to -38 in February from -45 in January. The score was forecast to rise slightly to -43. The latest increase was the biggest since March 2021 and came after a fall in the previous month.

All the five components of the consumer confidence index improved in February.

The latest survey was carried out from February 1 to 13.

Britons' opinion regarding their own financial situation in the next twelve months strengthened in February, with the corresponding index rising to -18 from -27.

Similarly, the index measuring the general economic situation over the next year rose to -43 from -54.

The measure of consumer intentions on large purchases improved somewhat in February, as the major purchase index rose to -37 from -40.

"The headline consumer confidence score is still severely depressed and the mood as well as the economy remain a long way off pre-lockdown levels, but a little consumer resilience might be what we need to soften any downturn in 2023," Joe Staton, client strategy director at GFK, said.

"However, many challenges remain and this may be nothing more than a bubble of hope - and bubbles always burst."

The survey results are based on the responses of around 2,000 consumers, carried out on behalf of the EU Commission.