Connect with us

Hi, what are you looking for?


Consumer confidence surges to highest level in a year

shopping during covid

Household confidence has surged to its highest level since the start of the pandemic on the back of the government’s announcement of a road map out of lockdown, a closely watched survey suggests.

GfK’s consumer confidence index rose by 7 points to -16 in March as households responded to the news, delivered on February 22, that social distancing restrictions could be lifted by the summer.

The rise in the index was driven by optimism about household finances. The index measuring changes in personal finances rose by 6 points to -2, just 4 points shy of the +2 per cent recorded before the pandemic hit last March.The forecast for personal finances over the next 12 months was also up 6 points at 10 per cent, 7 points higher than this time last year.

Household finances have held up reasonably well during the pandemic as the government’s income support schemes have protected incomes, while consumption has dropped sharply because of the repeated lockdowns. GfK said that the chancellor’s decision to continue supporting workers by extending the job retention scheme until September had also helped to support optimism.

Joe Staton, client strategy director at GfK, said: “Spring is in the air on the back of well-received budget announcements, the successful vaccine rollout and road maps in place for ending lockdown. If this improved mood translates into spending, it might help reverse some of the economic damage the UK has suffered.”

Britain’s labour market is fragile, with unemployment expected to climb to between 6.5 per cent and 7.5 per cent this year, but UK households have built up hundreds of billions of pounds in savings during the lockdowns.

Economists believe that between 5 and 10 per cent of these savings will be spent when restrictions are lifted, helping to fuel the economic recovery.

Andy Haldane, chief economist at the Bank of England, has compared the economy to a “coiled spring” that will rebound sharply when life returns to normal.

“Having been bottled in for a year, most people are desperate to get their lives, including their social lives, back. When given the opportunity to do so safely, they will seize it,” he said in an interview last month.

GfK’s report indicates that consumers are gearing up to spend. Its major purchases index, which measures expenditure on expensive items such as holidays, rose by 8 points to -11 per cent.

“It is highly likely this upward trajectory on all measures will build over the next six months and beyond,” the report said.

The savings index also rose by 2 points to 21 per cent, which is 11 points higher than at this time last year.

Economic activity is expected to rebound sharply as restrictions are lifted this year. According to the Organisation for Economic Development, the UK economy will grow by 5.1 per cent this year, up from a previous forecast of 4.2 per cent.

Consumers are also hopeful about the economy’s prospects. Expectations for the general economic situation over the coming year jumped by 13 points to -17, 10 points higher than in March 2020. By comparison, the measure for the UK’s general economic situation during the last year rose by 4 points to -60, 37 points lower than in the same month last year.

Read more:
Consumer confidence surges to highest level in a year

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



1 of 2 GOOGLE EARTH MAP showing the location of the Jagna Baywalk Mangrove Belt. Rhizophora sp (bakawan, left) at the Jagna Baywalk Mangrove...


(Part 2) To efficiently use scarce resources and political capital at this given time, we need a set of policy priorities that addresses the...


The stiff economic sanctions imposed by the US and Europe on Russia backfired. The biggest loser is Europe. Ironically, Russia has benefitted the most....


GREG LONG is one of the world’s best Big Wave surfers. He got his edge not just from his physical ability, comfort with risk,...


HANOI — Vietnam is considering building a high-speed railway that runs along the country’s length with a possible price tag of up to $58.7...


SHANGHAI — China’s financial hub Shanghai said on Sunday it will reopen all primary, middle and high schools, kindergartens and nurseries on Sept. 1...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...


Instagram still holds the top spot for social media in terms of building brand reputation and expanding business potential. Every day, more and more...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.