Optimism on personal finances but views on economy are lower than year ago
London, February 21st, 2025 – GfK’s long-running Consumer Confidence Index increased by two points to -20 in February. All measures were up in comparison to last month’s announcement.
Neil Bellamy, Consumer Insights Director, NIQ GfK, says:
“In contrast to last month when all five core measures were down, this month they are all up. The biggest improvement is in how consumers see their personal finances for the coming year with an increase of four points that takes this measure out of negative territory to +2. The Bank of England interest rate cut on February 6th will have brightened the mood for some people, but the majority are still struggling with a cost-of-living crisis that is far from over. Prices are still rising above the Bank of England’s target; gas and electricity bills remain a challenge for many households. So, it’s no surprise that consumer views on the general economic situation are still lower than 12 months ago, suggesting that people don’t expect the economy to show any dramatic signs of improvement soon. Politicians looking for bright spots on the horizon will be disappointed.”
UK Consumer Confidence Measures – February 2025
The Overall Index Score increased by two points to -20 in February. All measures were up in comparison to last month’s announcement.
Personal Financial Situation
The index measuring changes in personal finances during the last year is up three points at -7; this is seven points better than February 2024.
The forecast for personal finances over the next 12 months is up four points at +2, which is two points better 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 two points to -44; this is one point lower than in February 2024.
Expectations for the general economic situation over the next 12 months have improved three points to -31; this is seven points worse than February 2024.
Major Purchase Index
The Major Purchase Index is up three points to -17; this is eight points better than this month last year.
Savings Index
The Savings Index stayed at +30 in February; this is one point higher than this time last year.
About the survey
- The UK Consumer Confidence Barometer is conducted by GfK.
- This month’s survey was conducted among a sample of 2,011 individuals aged 16+ in the UK.
- 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 January 31st and February 13th 2025.
- The figures in 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 2025 are: March 21st; April 25th; May 23rd; June 20th; July 25th; August 22nd; September 19th; October 24th; November 21st; December 19th.
- 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 is 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) |
More from the Consumer Confidence Barometer
Podcast for monthly analysis and commentary on the Index scores
Every month since January 2024, GfK’s Neil Bellamy and moderator Lucy Green have discussed the monthly results in more detail in the ‘Thinking Ahead’ podcast. In addition to talking through the monthly measures, and delving more deeply into the scores, there’s a regular feature we call ‘Data Guru Corner’ where Neil explains how the Index is compiled. The podcast is published a few days after the main release here.
50th Anniversary Report for historical trend data
January 2024 marked 50 years of the UK Consumer Confidence Barometer (CCB). Through the winter of discontent, the Falklands War, economic boom and bust, the Brexit vote, and most recently the coronavirus pandemic, CCB has seen many highs and lows over five decades. Download it here
About the GfK Consumer Confidence Barometer powered by NIM
There is no other consumer research project with the longevity, rigor, and reliability of GfK’s Consumer Confidence Barometer (CCB). Each month since January 1974, it has provided a snapshot of how UK consumers feel about the crucial economic topics today and their outlook for the next 12 months. It has provided insight into the UK’s thinking through boom and bust, the Brexit vote, and most recently the coronavirus pandemic. Since October 2023, GfK has been cooperating with the Nuremberg Institute for Market Decisions (NIM), GfK’s not-for-profit founder, on the Consumer Confidence Barometer. The cooperation aims to provide an even more in-depth analysis of the reasons behind shifts in consumer confidence. GfK’s high-quality survey methodology and rigorous processes are unchanged so there is no impact on the CCB dataset and trends. This is the background to the sourcing in the release, ‘GfK Consumer Confidence Barometer powered by NIM’.
About GfK
For over 90 years, we have earned the trust of our clients around the world by solving critical questions in their decision-making process. We fuel their growth by providing a complete understanding of their consumers’ buying behavior, and the dynamics impacting their markets, brands and media trends. In 2023, GfK combined with NIQ, bringing together two industry leaders with unparalleled global reach. With a holistic retail read and the most comprehensive consumer insights – delivered with advanced analytics through state-of-the-art platforms – GfK drives “Growth from Knowledge”.
About NIM
The Nuremberg Institute for Market Decisions (NIM) is a non-profit research institute at the interface of academia and practice. NIM examines how consumer decisions change due to new technology, societal trends or the application of behavioral science, and what the resulting micro- and macroeconomic impacts are for the market and for society as a whole. A better understanding of consumer decisions and their impacts helps society, businesses, politics, and consumers make better decisions with regard to “prosperity for all” in the sense of the social-ecological market system. The Nuremberg Institute for Market Decisions is the founder of GfK. For more information, visit www.nim.org/en
