Consumers remain cautious but show signs for optimism
CONFIDENCE in the UK remained at very low levels this month, according to a survey published today.
The GfK NOP index showed consumers feel slightly less negative about their financial situation over the past year, but are still worried about the general economic situation and are more concerned about making large purchases.
The overall index held steady at minus 29 on the month – one point lower than February 2011.
GfK’s managing director Nick Moon believes the consistent readings are a good sign for the future.
“February’s figures suggest this current increase is built on sturdier foundations than the short-term spike we saw last year, where the gain was wiped out over the following few months,” he said.
Reasons for cautious optimism are found in the detail of the index, Moon added. “While the climate for major purchases fell following the January sales, this has been offset by an improvement in consumer sentiment about the state of the economy and how people feel about their finances over the coming year.”