GfK’s long-running Consumer Confidence Index has decreased one point this month to -6. Three of the five measures saw decreases in February, and two measures saw increases.
Joe Staton, head of market dynamics at GfK, says: “Against a backdrop of rising food and fuel prices, sterling depreciation, nominal earnings growth and a burgeoning fear of rapid inflation, concern about our personal financial situation for 2017 has contributed to a drop in UK consumer confidence this month (to -6).
"Any momentum behind the post-Brexit, debt-fuelled, consumer-spending boom now appears to be softening. Mounting pressures on disposable income are starting to bite as witnessed by two months of falling retail sales (ONS) and a further drop in the Major Purchase Index (this month down by five points). Consumer spending continues to drive economic growth in the UK so any further fall in confidence could support forecasts for a slowdown of the overall economy this year.”
The Major Purchase Index is seven points lower than this time last year.