Consumer confidence has fallen in a blow for retailers as customers veer away from big-ticket purchases, figures show.
GfK’s long-running Consumer Confidence Index dropped three points to minus 19 in February to a level last seen in November, despite easing inflation.
The decline was mainly driven by weaker perceptions of personal finances – looking back over the last year and ahead to the next 12 months – which both fell by four points.
The major purchase index – an indicator of confidence in buying big-ticket items – also fell by four points, to minus 14.
Expectations for the general economy over the next 12 months remained unchanged at minus 31 – the same as the score a year ago.
Meanwhile, a measure of confidence in saving money, which is part of the survey but does not contribute to the overall score, fell seven points to 21 – nine points lower than last year.
Neil Bellamy, consumer insights director at GfK, said: “Fewer people say that now is a good time to make major purchases and fewer consumers intend to save money.
“Although the rate of inflation is easing, prices continue to rise, forcing many households to prioritise day-to-day spending over longer-term needs.
“Views on the broader economy remain firmly in negative territory, with consumers anticipating only limited economic growth this year.
“Unemployment has now reached its highest level in nearly five years, and this is increasing concerns about job security, particularly given the backdrop of weak wage growth. With fewer entry-level opportunities available, those on lower incomes are already feeling the strain, and this trend risks undermining the typically more optimistic outlook held by younger age groups.”
This article was written by Press Association Consumer Affairs Correspondent and Josie Clarke from Press Association and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.