Consumer confidence hits three-month high in April

Consumer confidence has risen from -21 to -19 in April, marking the first improvement in three months, GfK has reported.

As consumer confidence across the UK has come above the -20 forecast, it also marks an improvement on the prior year, when the overall index score stood at -30.  

According to GfK, the recovery in consumer confidence has still stalled this year due to markets delaying Bank of England rate cuts. 

Joe Staton, client strategy director at GfK, said: “Consumer confidence stalled at minus 21 in March, following the two-point dip in February. The improved personal finance measure (next 12 months) at plus 2 is encouraging because it’s the first positive and the highest score since December 2021. This is welcome news given the challenges faced by Britons of fiscal drag, higher costs for fuel, rising council taxes and utilities eroding any increases in wages or other income. 

“But 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.  Moreover, this month the Major Purchase Index has dropped two points, the view of the wider economy over the past year is down and the Savings Index has dived four points.” 

He added: “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.”