Bad news spooks consumer confidence
February 25, 2022
The relentless run of hard economic news has impacted confidence among consumers to make purchase decisions for big-ticket items like flooring and furniture.
GfK's Consumer Confidence Index fell 7 points to minus 26, it's lowest level since he depths of the pandemic in what analysts described as a "perfect storm" of price rises, increased taxation and interest rate hikes.
The Major Purchase index, a specific measure of consumer confidence in buying a range of household items such as furniture flooring and appliances, fell by 5 points to minus 15 – but that number is 4 points higher than this time a year ago.
"Fear about the impact of price rises from food to fuel and utilities, increased taxation and interest rate hikes has created a perfect storm of worries that has shaken consumer confidence," said GfK client strategy director Joe Staton.
"Slowing consumer spend slows the wheels of the U.K. economy so this is unwelcome news. There’s clear anxiety in these findings as many consumers worry about balancing the household books at the end of the month," he said.
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