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Published
Feb 28, 2020
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Up again! UK consumer confidence rises for third straight month in February

Published
Feb 28, 2020

UK consumer confidence rose for a third month on the run in February, boosted by clutch of positives including rising wages and house prices, low unemployment and stable inflation.
 

UK consumer confidence is still low but is rising


But before we get carried away, its worth noting that GfK’s long-running Consumer Confidence Index increased two points to -7 for February so is still negative overall. Three related measures also increased, while one fell, and one remained the same this month.
 
First the negative reading. The index measuring changes in personal finances during the last 12 months fell two points this month to -1, one point lower than February 2019. However, the forecast for personal finances over the next 12 months is unchanged at +6, five points higher than a year ago.
 
The measure for the general economic situation of the country during the last 12 months increased five points this month to -23, 10 points higher than in February 2019, but still low. Expectations for the general economic situation over the next 12 months also increased three points to -21, up 17 points on a year ago. 
 
Importantly, the Major Purchase Index also increased five points in February to +6, coming in one point higher on 12 months ago.
 
Meanwhile, the Savings Index remained the same this month at +20, two points higher than at this time last year.
 
Joe Staton, client strategy director at GfK said: “The rise in the Overall Index Score is driven by our increasingly positive view on the state of the UK’s general economy for both the past and the next 12 months. 
 
“Despite the fact that consumers have shown some concern about their day-to-day personal finances this month, a big five-point jump in the Major Purchase Index reflects the recent rebound in retail sales, as widely reported.”
 
But he added: “Although the Index remains south of positive, the trajectory remains upwards. The only ‘known unknown’ is the potential impact of coronavirus on behaviour, confidence and spending patterns. This is a developing story, watch this space.”

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