Consumer confidence in the UK economy has stabilised over the last month, but confidence remains low, according to new research.
The GfK NOP Consumer Confidence Index has increased one point this month to -28. February saw small increases across three of the five measures; personal financial situation over last 12 months and over the next 12 months and the major purchase index.
Public perception of the general economic situation over the last 12 months and over the next 12 months both decreased by one point each.
Nick Moon, MD of GfK NOP Social Research, said: “February’s index shows that public feeling has barely changed from last month. The statistically insignificant increase shows that while consumer confidence has stabilised, it has not bounced back.
“Overall confidence remains low and, although it has not reached the depths of two years ago, the fact that it is 10 points down on six months ago, and 14 points down on a year ago, represents a significant set-back to hopes of recovery. While the government will be relieved that consumer confidence has leveled out, such a small increase indicates that last month‟s astonishing figures were not an aberration.
“With the government‟s strategy based heavily on economic growth providing private sector jobs to replace the ones being cut, they will have to hope that consumer confidence is a less good predictor of the economy than previously.”
Source: GfK NOP Consumer Confidence Index