UK consumer confidence remains low due to economic angst

UK consumer confidence remains stuck in the doldrums, with concerns about the economic situation dampening a more upbeat mood among individuals.

GfK’s consumer confidence index remained at zero in March for the second month, down from January's +4 and from the +4 seen in March last year.

The index measuring expectations of the general economic situation for the next 12 months was unchanged at -12, after jumping up from -5 in January and 18 points lower than this time last year.

Looking forward to the coming 12 months, consumers on average displayed an improved personal outlook, with the personal financial situation forecast increasing to +9 from +8 in February after dropping a point from January.

The index measuring consumers' personal financial situation during the last 12 months shrank to +4 from +5 in February, but is much improved from the -2 in March 2015.

Joe Staton, head of market dynamics at GfK, wondered if the economic view was down to Brexit jitters.

"While UK consumers remain resolutely upbeat about their personal financial situation, even showing a +1 point increase this month when asked about expectations for the year ahead, concerns about prospects for the general economic situation continue to dampen our mood.

"Looking at how consumers see the wider economy developing over the next 12 months, we are 18 points lower this month than in March 2015. So, despite good economic headlines about low inflation, interest rates and prices in the shops, concerns about Brexit and the ongoing Eurozone crisis appear to be hitting home.”