The latest data from GfK's Consumer Confidence Index indicates a slight improvement in UK consumer sentiment, with the headline score increasing by one point to -19 in March. While some measures showed marginal gains, others declined, reflecting ongoing economic uncertainty.
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Neil Bellamy, Consumer Insights Director at NIQ GfK, commented on the results: 'Consumer confidence remains subdued with a headline score of -19 for March. Views on personal finances for the past year are slightly down from -7 to -9, while perceptions of the wider economy over the last 12 months and looking ahead a year are each up two points at -42 and -29 respectively. But this is only a marginal improvement.' He noted that while the index has remained in a narrow range of -17 to -22 since September, this is an improvement compared to the depths of the cost-of-living crisis in 2022 and early 2023, when the score stayed at -40 or worse for nine consecutive months. However, he cautioned: 'If consumer confidence were a patient languishing in a hospital bed, a doctor would say there is little evidence of a recovery as yet.'
Key findings from the March Consumer Confidence Index:
- Personal Financial Situation: The measure of personal finances over the past year fell by two points to -9, though this remains four points higher than in March 2024. Expectations for personal finances over the next 12 months also declined by one point to +1, one point worse than the same period last year.
- General Economic Situation: The assessment of the UK economy over the past year improved by two points to -42, marking a three-point improvement from March 2024. Expectations for the economy in the coming 12 months also rose two points to -29 but remain six points lower than last year's figure.
- Major Purchase Index: This measure, which tracks consumer sentiment on major spending decisions such as furniture and electrical goods, remained unchanged at -17. However, this is ten points higher than in March 2024, suggesting some resilience in spending intentions.
- Savings Index: The savings measure saw the sharpest decline, dropping five points to +25, matching the level recorded in March 2024.
Outlook: stability but no clear recovery
Despite the slight uptick in some indicators, Bellamy highlighted the fragile nature of consumer sentiment: 'The current stability is to be welcomed, but it won't take much to upset the fragile consumer mood.' While consumer confidence is stronger than during the worst periods of the cost-of-living crisis, it remains well below the long-term average of -10, underscoring the ongoing economic pressures on households.
About the survey
The UK Consumer Confidence Barometer, conducted by GfK, surveyed 2,005 individuals aged 16 and over across the UK. Interviews were conducted between 28 February and 13 March 2025, with quotas applied to ensure a representative sample. The index has been tracking UK consumer sentiment since 1974 and provides critical insights into economic trends and public confidence levels.
The next Consumer Confidence Index release is scheduled for 25 April 2025. All published materials referencing the survey must cite GfK as the data source.
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