UK lockdown: Consumer confidence remains ‘severely depressed’
Consumer confidence in the UK’s lockdown economy remained “severely depressed” at the end of April, although research indicated there could be some pent up consumer demand when restrictions lift.
GfK’s consumer confidence index was at minus 33 at the end of April, a one-point increase on the previous score. However, consumer confidence has plummeted 20 points since April last year.
The major purchase index reported a three-point jump, suggesting there could be some pent up demand when business is able to open up.
Confidence in both personal finances and the general economic situation over the next 12 months also lifted by three points, indicating growing optimism among consumers.
GfK client strategy director Joe Staton said: “Despite a one-point improvement in our second Covid-19 flash report at minus 33, consumer confidence in Britain’s lockdown economy is still severely depressed.
“However, we are recording small improvements in our personal finances and the wider economic picture for the next 12 months, key indicators when gauging optimism for our path to recovery.
“And although the majority of high street retailers have been closed since 23 March, we are also seeing a small pick-up in our Major Purchase Index with a three-point increase, a possible indication of pent-up demand once business returns to the ‘new normal’.
“But in contrast to this, the nine-point spike in the Savings Index suggests cautious consumers are stashing money under the mattress over worries for the future.”