UK consumer confidence jumped in March, GfK says

UK consumers’ spirits soared in February on the back of improved perceptions of the economy’s recent performance, the results of a widely followed survey revealed.

News of a sharp increase in the proportion of those respondents who believe now is a good time to undertake major purchases will also boost spirits at the Old Lady on Threadneedle Street, economists said.

Coming on the heels of high and rising employment, together with negligible inflation, it “reinforces belief that there is little likelihood that consumers will start to delay purchases in anticipation of falling prices,” commented Dr. Howard Archer, chief UK+European economist at IHS Global Insight.

"There is little likelihood that consumers will start to delay purchases"

The Gfk NOP index for Britain, which was carried out on behalf of the European Commission, rose to a reading of +5.6 for March, after a print of +3.9 in February and +3.0 in January.

That was comfortably ahead of the barometre’s long-run average value of -9.2.

Consumers’ inflation expectations for the coming twelve months also rose.