NEWS23 April 2021

Slight growth in consumer confidence

FMCG Finance News Retail Trends UK

UK – Consumer confidence in the UK increased by one point in April, according to GfK’s Consumer Confidence Index. 

Hourglass waiting consumer confidence_crop

The overall index score now sits at -15, with two measures increasing during the past month, two decreasing and one staying flat.

The forecast for personal finances over the next 12 months remained at the same level as it was in March (+10 ), while expectations for the country’s general economic situation in the next year improved by six points to -11.

The measure for individual finances over the past 12 months was down one point, at -3. The view of the economy over the past year improved, with an increase of two points to -58, which is 14 points lower than this time last year.

The major purchase index, which tracks whether people think now is a good time to be buying more expensive items, decreased by one point to -12 in April.

Joe Staton, client strategy director, GfK, said: “Confidence has edged up one point in April with consumers taking a more guarded view on the future.

“This clear trend of growing confidence reflects the forecast of a rebound for our economy during the second half of the year. The improvement in the consumer mood since January is welcome but the pandemic has hit household finances hard and, on the road ahead, we will still see concerns over new variants, rising inflation and the debt overhang.

“Nevertheless, there’s every chance that as the recovery gains momentum and the numbers get stronger, confident consumers will continue to spend and drive the wheels of UK finances into the summer and beyond.”

The Consumer Confidence Barometer is conducted by GfK. Interviewing for this month’s survey was carried out between 1st-13th April with a sample of 2,002 adults.