All measures jump as consumer confidence shows signs of recovery

UK consumer confidence rose by six points in April as all measures increased, including big-ticket items.

According to the latest GfK Consumer Confidence Index, overall figures saw an increase by six points to -30 in April 2023.

The Major Purchase Index, which includes big ticket items such as furniture, is up five points to -28; this is four points higher than this month last year.

The measure for the general economic situation of the country during the last 12 months is up seven points at -55; this is five points higher than in April 2022. 

The index measuring changes in personal finances during the last 12 months is up five points at -21; this is two points worse than April 2022.

The Savings Index is down two points this month at +19; this is nine points higher than this time last year.

Joe Staton, Client Strategy Director GfK, says: “As food and energy prices continue to rise, and inflation eats into wages, the cost-of-living crisis is a painful day-to-day reality for many. But are all consumers buckling under the pressure? On the evidence of April’s confidence figures, the answer is no. Instead, there’s a sudden flowering of optimism with big improvements across the board.

“The eight-point jump in how we see prospects for our personal financial situation is a dramatic change that might suggest household finances are stronger than we thought. The brighter views on what the general economy has in store for us, with April’s six-point rise cementing a 20-point improvement since January, could even be seen as the proverbial ‘green shoots of recovery’.

“Moreover, the Major Purchase Index at -28 is higher than it has been for a year and will bring much-needed cheer to retailers as we head into summer. This is the third month in a row that confidence overall has improved; can we look forward to this momentum building for the year ahead?”

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