GfK’s Consumer Confidence Index decreased five points to -31 in March. All five measures were down in comparison to the February 25th announcement, with The Major Purchase Index decreasing by nine points to -24 (13 points lower YoY).
Joe Staton, client strategy director, GfK, says: “A wall of worry is confronting consumers this month and there is an unmistakable sense of crisis in our numbers. Consumers across the UK are experiencing the impact of soaring living costs with 30-year-high levels of inflation, record-high fuel and food prices, a recent interest rate hike and the prospect of more increases to come, and higher taxation too – all against a background of stagnant pay rises that cannot compensate for the financial duress.
"This is the fourth month in a row that UK consumer confidence has dropped. With a headline score of -31, we are at a level last seen in October and November 2020 when Covid numbers were rising. Confidence in our personal financial situation and in the wider economy are severely depressed, while the daily news of unimaginable suffering from a horrifying war in Europe and rising Covid numbers at home is adding to the bleak mood. The outlook for consumer confidence is not good – it’s certain there’s more bad news to come.”