Consumer confidence has risen despite cost-of-living crisis being ‘far from over’

The overall index score for the month grew by two points to -20, with all measures up in comparison to last month’s figures, according to the latest GfK consumer confidence survey.

The personal financial situation index increased three points over the past year to -7, seven points better than in February last year.

Another increase was in the forecast for personal finances over the next 12 months which increased four points to +2 and out of “negative territory”.

With an eye to the general economic situation, the measure is also up two points to -44, and one point lower than in February 2024.

Expectations for the general economic situation over the next 12 months have also improved three points to -31.

The major purchase index also rose three points to -17 and resulted in an improvement of eight points year-on-year.

GfK consumer insights director Neil Bellamy said: “In contrast to last month when all five core measures were down, this month they are all up. The biggest improvement is in how consumers see their personal finances for the coming year with an increase of four points that takes this measure out of negative territory to +2.

“The Bank of England interest rate cut on February 6 will have brightened the mood for some people, but the majority are still struggling with a cost-of-living crisis that is far from over.

“Prices are still rising above the Bank of England’s target and gas and electricity bills remain a challenge for many households. So, it’s no surprise that consumer views on the general economic situation are still lower than 12 months ago, suggesting that people don’t expect the economy to show any dramatic signs of improvement soon. Politicians looking for bright spots on the horizon will be disappointed.”