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Apr 23, 2021
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April consumer confidence softens but economic outlook remains strong - GfK

Published
Apr 23, 2021

Growing consumer confidence before the return of non-essential retail earlier this month looks to have tempered.


UK consumer confidence inched up in April


For upbeat, now read caution as consumer confidence increased just one point to -15 in April, according to the latest figures from research group GfK’s long-running Index. In March, the reading was up seven points.

However, while some concerns crept in over potential new Covid-19 variants, inflation, and the final cost of the pandemic, consumers’ views on personal finances and savings remained strong.

Although consumers were “taking a more guarded view on the future… this clear trend of growing confidence reflects the forecast of a rebound for our economy during the second half of the year”, said Joe Staton, Client Strategy director for GfK.

Of GfK’s five overall measures for April, two were up in comparison to March, two were down, and one was flat.

The index measuring changes in personal finances over the last 12 months is down one point at -3, one point better than April 2020. However, the forecast for personal finances over the next 12 months is the same as last month at +10, still 24 points higher than this time last year.

The measure for the general economic situation of the country during the last 12 months also rose two points at -58, but this is still 14 points lower than in April 2020.

Expectations for the general economic situation over the coming 12 months improved by six points to -11, 45 points higher than a year ago.

However, the Major Purchase Index dipped one point to -12 in April, 40 points higher than it was this month last year.

And the Savings Index was up by one point to +22 in April, some 17 points higher than this time last year.

Staton added: “The improvement in the consumer mood since January is welcome but the pandemic has hit household finances hard and, on the road ahead, we will still see concerns over new variants, rising inflation and the debt overhang. 

“Nevertheless, there’s every chance that as the recovery gains momentum and the numbers get stronger, confident consumers will continue to spend and drive the wheels of UK finances into the summer and beyond”.

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