Roadmap out of lockdown sends consumer confidence to near 12-month high
A well-received budget combined with the roadmap out of lockdown sent consumer confidence to a near 12-month high in March.
The closely-watched consumer confidence index from researcher GfK jumped seven points in March to minus 16, its highest rating in nearly a year.
Coronavirus restrictions easing across the UK, combined with an widely successful vaccine rollout and a well-received budget have left consumers feeling more confident about their personal finances and the wider economy.
GfK’s index found consumers felt more optimistic about their current and prospective personal finance situation, with both indices rising six per cent.
Consumers were slightly more pessimistic about the economic situation over the last 12 months, which saw GDP contract by a record 9.9 per cent, marking the largest annual fall on record.
‘Reverse the damage’
But Brits were considerably more optimistic about the UK’s general economic situation for the next 12 months, with GfK’s index rising 13 per cent.
GfK client strategy director Joe Staton said: “Spring is in the air on the back of well-received budget announcements, the successful vaccine roll-out and roadmaps in place for ending lockdown. All measures jumped in March with the Overall Index Score up a robust seven points to minus 16. This marks an improvement each month into 2021.
“If this improved mood translates into spending, it might help reverse some of the economic damage the UK has suffered. And the eight-point fillip in our major purchase measure to -11 suggests this may well happen. It’s highly likely this upward trajectory on all measures will build over the next six months and beyond.”