• GfK Consumer Confidence Index dropped four points to 0
  • Shoppers remained relatively confident in their personal finances as confidence dipped one point
  • Outlook on the UK’s general economic situation suffered a steep decline, down to -12

Consumer confidence dropped in February as customers’ outlook on the general economic situation suffered a sharp decline.

Four of the measures used to calculate the GfK Consumer Confidence Index decreased from last month, dragging the overall index score down to 0, one point below this time last year.

The outlook on the UK economy over the next year plummeted seven points on last month to -12 and down from +3 in February last year.

People’s view in the economy over the past 12 months was also negative, dropping to -10, down from -3 last year.

GfK head of market dynamics Joe Staton said: “Despite the positive impact of continued low interest rates and subdued inflation for our day-to-day household budgets, the feeble outlook for growth and a variety of economic uncertainties since the start of the year has depressed our New Year optimism.”

Consumer confidence in their personal finances during the past 12 months was the only measure in the indiex to report an increase, rising from -3 in February last year to +5. 

Confidence in personal finances for the next 12 months dipped one point to +8 compared with last month, but was up from +6 on last year.

People’s confidence to buy big ticket items advanced eight points year-on-year to +12, but that represented a four-point dip on last month.