The overall index score was unchanged at -21 in March. However, three measures have improved in comparison with last month’s results: “personal financial situation over the last 12 months” has increased by one point to -13 and “personal financial situation over the next 12 months” has improved by two points to +2.
Similarly, “general economic situation over the next 12 months” has gone up by one point to -23.
Despite this there have been some falls in consumer outlooks: “general economic situation over the last 12 months” has fallen by two points to -45, while the Major Purchase Index has decreased by two points to -27.
Joe Staton, client strategy director at GfK, said: “Consumer confidence stalled at minus -21 in March, following the two-point dip in February. The improved personal finance measure for next 12 months at +2 is encouraging because it is the first positive and the highest score since December 2021. This is welcome news given the challenges faced by Britons of fiscal drag, higher costs for fuel, rising council taxes and utilities eroding any increases in wages or other income.
“But is there a note of worry this month? Look back to last year and it’s clear the improvements in consumer confidence seen most months since January 2023 have vanished. Moreover, this month the Major Purchase Index has dropped two points, the view of the wider economy over the past year is down and the Savings Index has dived four points.
“Are we temporarily on pause, or are consumers about to press ‘reverse’? In the run-up to the next UK general election, these are important questions for the future health of the economy.”
