UK consumers are holding up under the pressure of high inflation and interest rate rises, a new survey shows.
GfK’s long-running Consumer Confidence Index increased by six points to -30 in April, with all measures up in comparison to the previous month.
It’s the third consecutive month that overall confidence has improved. However, the figure is still firmly in negative territory, indicating that the UK still has a long way to go before emerging from the current economic gloom.
The survey of 2,000 UK adults showed that people’s confidence in their own personal finances and the general economic situation of the country is strengthening.
The major purchase index score, reflecting people’s view on whether now is the right time to buy items such as furniture or electrical goods, also improved in April and is now higher than it has been for a year.
Speaking to Marketing Week, GfK’s client strategy director Joe Staton said that the latest figures give the “tantalising sense” that consumer confidence is solidly improving.
“But we need some good macroeconomic news to really put a rocket under these figures. Sadly, that good news is missing,” he added.
Official figures released this week showed that UK inflation fell by less than expected last month after the fastest rise in food prices for 45 years.
Inflation slowed to 10.1% in the year to March from 10.4% in February, but economists had forecast that it would drop below 10%.
