UK consumer confidence hits highest level since April 2022

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This article is brought to you by Retail Technology Review: UK consumer confidence hits highest level since April 2022.

The latest consumer confidence index from Gfk has shown that consumer confidence rallied in February, following the historic lows seen in January of this year.

Confidence in the general economic situation for the year ahead climbed by 11 points, although remains at a negative 43, with no movement compared to February of last year.

More consumers are committing to big ticket items, with a three point increase in the major purchase index. 

Confidence in personal finances for the year ahead also increased by nine points, but again remains four points down versus last year at a score of 18. 

Overall, Gfk’s headline figure increased by seven points in February but despite this positive growth, it remains at a ‘severely depressed’ negative 38.

CEO of RIFT Tax Refunds, Bradley Post, commented: “On the face of it, it would appear that the worst could be over where the cost of living crisis is concerned and it seems as though many households have managed to adapt to the higher cost of living in recent months. 

As a result, there is a greater air of confidence about the year ahead, but the outlook remains far from ideal and in fact, this could well be the calm before the storm.

With further hikes to costs such as energy and broadband due in April, those who are already stretched extremely thin financially will have to dig even deeper in order to get by. 

While warmer temperatures and longer days will help reduce energy consumption to a degree, it’s likely that the rejuvenated levels of consumer confidence being seen at present will be severely dampened.”

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