Marketers still grappling with ‘weak’ consumer confidence despite uptick
Despite all measures on GfK’s Consumer Confidence Index increasing in February, the way people view the general economic situation looking ahead is worse than a year ago.
After a gloomy January, with consumer confidence dropping back to where it was at the end of 2023, marketers can feel slightly more optimistic in February given all five measures on GfK’s Consumer Confidence Barometer have increased.
The Overall Index Score, which combines the five measures, increased by two points to -20 in February. Although this is a two-point improvement on last month, it “doesn’t amount to much”, according to NIQ GfK’s consumer insights director, Neil Bellamy, who says –20 is the average headline score across the last 18 months.
The most notable increase came in consumer attitudes towards their own personal financial outlook over the next 12 months. This increased four points to +2 since January and is two points better than this time last year. The attitude towards personal finances during the last year is up three points at -7 – seven points better than February 2024.
However, the way people view the general economic situation, looking back a year and 12 months ahead, is better in February than in January – but it’s worse on both counts compared to a year ago.
“The cloud hanging over all of us is the economy,” explains Bellamy. “Building the economy back up to a point where it gives consumers something to shout about is going to be a challenge. Until we get there, marketers will be well aware they have to grapple with weak consumer confidence.”
The index covering the general economic situation of the country during the last 12 months increased two points to -44, up two points from January 2024. While expectations for the year ahead were up by three points to -31, it’s a fall from seven points versus the same period last year.
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Consumers also say they are slightly more likely to purchase a big ticket item at the moment with the major purchase index increasing three points to –17.
GfK also records a Savings Index, demonstrating consumers’ inclination to save. This is not included when calculating the Overall Index Score, but it was the only measure recorded by GfK to remain the same at +30.
