According to latest figures from GfK’s UK Consumer Confidence Index, households have had a boost owing to low inflation, but rather than splurging on expensive items, Brits are resorting to saving tactics.
The UK Consumer Confidence Survey from GfK was conducted amongst a sample of 2002 individuals aged 16+ on behalf of the European Commission.
According to GfK, the overall confidence index has stayed at 4 in April with two measures – “Personal Financial Situation over last 12 months” and “General Economic Situation over last 12 months” – seeing an increase; two measures – “Personal Financial Situation over next 12 months” and “General Economic Situation over next 12 months” – staying the same; and one measure “Major Purchase Index” showing a decline.
Personal Financial Situation, which measures changes in personal finances during the last 12 months, has increased two points this month to 0; this is 11 points higher than April 2014. The forecast for personal finances over the next 12 months has stayed at 7 this month; this is two points higher than April 2014.
General Economic Situation, which measures the general economic situation of the country during the
last 12 months, has increased two points this month to 3; this is 16 points higher than April 2014. Expectations for the General Economic Situation over the next 12 months has seen it stay at 6 this month; this is two points lower than this time last year.
Major Purchase Index decreased three points this month to 6; this is 10 points higher than this time last year, while Savings Index has increased four points to -2; which is six points higher than April 2014.
Nick Moon, Managing Director of Social Research at GfK, said: “The government goes into the election with the final Consumer Confidence Barometer offering mixed fortunes. On the one hand, there is no continuing momentum – the Index has not risen since last month – while on the other hand the Index is standing at a far higher point than when the government came to power. In May 2010, the core index score was – 18. After dipping to as low as -33 in December 2011, it was out of negative territory at zero by May 2014 and over the past 11 months has recorded six positive scores. We haven’t seen the scores of the past two months (+4) since September 2002.”