Consumer confidence improves despite Brexit fears - GfK

Consumer confidence remained ‘stoic’ in February, despite ongoing concerns about the impact of Brexit, research published Thursday found.

The widely-followed GfK Consumer Confidence Index was -13 in February, a marginal improvement on January’s -14 and better than analyst forecasts of -15. In February 2018, the Index stood at -10.

Joe Staton, client strategy director at GfK, said: “Despite a slowdown in overall growth and concerns about the impact of Brexit uncertainty on the UK economy, top-line consumer confidence is stable again this month.

“Although bumping along in negative territory, the overall index score is not showing any sign of making the dramatic drop seen after the June 2016 Brexit referendum, or in the early days of the financial downturn.”

However, he warned: “While the view on personal finances looking at the year to come is still marginally positive, the continuing depressed sentiment towards the general economy situation might point towards the calm before the storm of post-Brexit headwinds.

“It’s worth bearing in mind that many economic indicators remain positive. But it is frankly amazing that confidence is so stoic and stable in a world of sharp political instability and fear of the unknown.”

The personal finance situation measure for the year to come was +1, while the general economic situation for the year ahead was -38.

Greg Lawless, analyst at Shore Capital, said: “We have been highlighting that the low levels seen in the GfK Consumer Confidence Index are at odds with the Asda income tracker. In January, the Asda tracker showed the fastest rate of growth for two years, reflecting a widening gap between wage growth of around 3.3% and inflation levels of 1.8% as UK living standards continue to rise.

“Amid what can only be called a political circus, folks are actually becoming used to the prevailing nonsense and pressing on with their everyday lives.”