Consumer confidence has "vanished"
March 25, 2024
The key retail confidence index for big ticket items such as flooring has slipped again causing analysts to speculate if the recent signs on recovery are on pause.
The Major Purchase Index from leading retail analysts GfK fell two points to minus 27 this March, following a five point slide in February.
The data reverses an improving trend that had started last October. "Is there a note of worry this month? Look back to last year and it’s clear the improvements in consumer confidence seen most months since January 2023 have vanished,"says Joe Staton of GfK.
“Are we temporarily on pause, or are consumers about to press ‘reverse’? In the run-up to the next UK general election, these are important questions for the future health of the economy,” he said.
However, there are reasons to be cheerful. The latest Major Purchase Index figures are six points higher than this time last year.
Also the GfK survey reports that expectations for the general economic situation over the next 12 months increased by one point to minus 23 – 17 points better than last March – and confidence in personal finances for the year ahead saw an “encouraging” two-point rise to positive two, which was 23 points higher than this time last year.
GfK client strategy director Joe Staton said: “The improved personal finance measure at positive two is encouraging because it’s the first positive and the highest score since December 2021."
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