But no spring in the financial steps of UK consumers
GfK’s long-running Consumer Confidence Index increased two points in March to -36. Three measures were up, one was unchanged and one was down in comparison to last month’s announcement.
Joe Staton, Client Strategy Director, GfK says:
“A small improvement in the Overall Index Score this month masks continuing concerns among consumers about their personal financial situation. This measure best reflects the financial pulse of the nation and it remains weak, with the figure for the coming year down three to -21 and an unchanged score for the past 12 months of -26. Forecasts that headline inflation will fall this year have proved premature, given Wednesday’s announcement of an unexpected increase. Wages are not keeping up with rising prices and the cost-of-living crisis remains a stark reality for most. The recent Budget will bring relief to some sections of the population, but for now many people are simply looking to survive day-by-day. Just having enough money to live right and pay the bills remains the number one concern for consumers across the UK.”
UK Consumer Confidence Measures – March 2023
The Overall Index Score increased two points in March to -36. Three measures were up, one was unchanged and one was down in comparison to last month’s announcement.
Personal Financial Situation
The index measuring changes in personal finances during the last 12 months was the same at -26; this is 13 points worse than March 2022. .
The forecast for personal finances over the next 12 months decreased three points to -21, which is three points lower than this time last year.
General Economic Situation
The measure for the general economic situation of the country during the last 12 months is up three points at -62; this is 11 points lower than in March 2022.
Expectations for the general economic situation over the next 12 months have increased by three points to -40; this is nine points better than March 2022.
Major Purchase Index
The Major Purchase Index is up four points to -33; this is nine points lower than this month last year.
Savings Index
The Savings Index is up two points this month at +21; this is three points higher than this time last year.
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Notes to editor:
Please source all information to GfK.
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About the survey
- The UK Consumer Confidence Barometer is conducted by GfK.
- This month’s survey was conducted among a sample of 2,000 individuals aged 16+.
- Quotas are imposed on age, sex, region and social class to ensure the final sample is representative of the UK population.
- Interviewing was conducted between March 1st and March 14th 2023.
- The figures contained within the Consumer Confidence Barometer have an estimated margin of error of +/-2%.
- The Overall Index Score is calculated using underlying data that runs to two decimal points.
- Press release dates for the remainder of 2023 are: April 21st; May 19th; June 23rd; July 21st; Aug 25th; Sept 22nd; October 20th; November 24th; December 15th
- Any published material requires a reference to GfK e.g. ‘Research carried out by GfK’.
- This study has been running since 1974. Back data is available from 2006.
- The table below provides an overview of the questions asked to obtain the individual index measures:
|
Personal Financial Situation (Q1/Q2) |
This index is based on the following questions to consumers: ‘How has the financial situation of your household changed over the last 12 months?’ ‘How do you expect the financial position of your household to change over the next 12 months?’ (a lot better – a little better – stay(ed) the same – a little worse – a lot worse) |
|
General Economic Situation (Q3/Q4) |
This index is based on the following questions to consumers: ‘How do you think the general economic situation in this country has changed over the last 12 months?’ ‘How do you expect the general economic situation in this country to develop over the next 12 months?’ (a lot better – a little better – stay(ed) the same – a little worse – a lot worse) |
|
Major Purchase Index (Q8) |
This index is based on the following question to consumers: ‘In view of the general economic situation, do you think now is the right time for people to make major purchases such as furniture or electrical goods?’ (right time – neither right nor wrong time – wrong time) |
|
Savings Index (Q10)
|
This index is based on the following question to consumers: ‘In view of the general economic situation do you think now is?’ (a very good time to save – a fairly good time to save – not a good time to save – a very bad time to save) (Commented on but not included in the Index Score) |
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