Consumer confidence recovers in April

The index found that the measure for changes in personal finances over the previous year was up five points, although still in negative territory at -21 and two points worse off than April 2022.

The forecast for personal finances over the next 12 months was also up eight points to -13, a 13-point improvement on April last year.

The findings are based on a survey of 2,000 adults in the UK carried out between 3rd and 13th April 2023.

The measure for the general economic situation of the country during the last 12 months was up seven points at -55, five points higher than in April 2022, while expectations for the economy over the next year increased by six points to -34, a score that was 21 points better than April 2022.

The Major Purchase Index, which measures whether now is a good time for a major purchase, rose five points from March to -28 and was four points higher than April last year.

The Savings Index was down two points this month at a positive score of 19, and was nine points higher than this time last year.

Joe Staton, client strategy director at GfK, said: “As food and energy prices continue to rise, and inflation eats into wages, the cost-of-living crisis is a painful day-to-day reality for many. But are all consumers buckling under the pressure? On the evidence of April’s confidence figures, the answer is no.

“Instead, there’s a sudden flowering of optimism with big improvements across the board. The eight-point jump in how we see prospects for our personal financial situation is a dramatic change that might suggest household finances are stronger than we thought.”