Consumer confidence dips in February

The latest GfK Consumer Confidence Index reported a dip to -19 in February, with three measures down, one measure up and one measure flat compared to the previous month.

The three measures down were personal financial situation over last 12 months, which dipped four percentage points to -7; personal financial situation over next 12 months, which was down four percentage points to +2; and the major purchase index, which dipped four percentage points to -14.

Respondents thought that the general economic situation over the last 12 months had improved one percentage point to -44, whereas feelings about the general economic situation over the next 12 months was flat at -31.

GfK’s consumer insights director Neil Bellamy said: “After a modest improvement in recent months, consumer confidence is down three points in February, returning to the level seen in November 2025.

“This decline is mainly driven by weaker perceptions of personal finances – both looking back a year and ahead. Fewer people say that now is a good time to make major purchases (a measure that has dropped four points) and fewer consumers intend to save money (the Savings Index is down seven points).

“Although the rate of inflation is easing, prices continue to rise, forcing many households to prioritise day-to-day spending over longer-term needs. Views on the broader economy remain firmly in negative territory, with consumers anticipating only limited economic growth this year.

“Unemployment has now reached its highest level in nearly five years, and this is increasing concerns about job security, particularly given the backdrop of weak wage growth. With fewer entry-level opportunities available, those on lower incomes are already feeling the strain, and this trend risks undermining the typically more optimistic outlook held by younger age groups.”