GfK Consumer Confidence Index February 2021

GfK’s Consumer Confidence measure improved by five points in February to -23 – the strongest rise for a year but still 16 points lower than a year earlier.
All measures within the index improved compared to the previous month, except for perceptions around personal finances over the past year.
Whilst the rise in confidence is encouraging, we tread carefully into 2021 with rising unemployment and inflation likely to weigh on sentiment in coming months.
Retailers can take some comfort however from the five-point improvement in consumers’ willingness to make major purchases, supported by a rise in perceptions around personal finances going forward.

Source: GfK

General economic situation

Consumers’ perceptions of the general economic situation over the last 12 months increased by three points to -64 in February compared to the previous month. This is 41 points lower than in February 2020.

Expectations for the general economic situation over the next 12 months improved markedly to -30, 14 points high than in January 2021 and just nine points lower than a year ago.

Personal finances

The personal finances component over the last twelve months was unchanged at -8 – seven points lower than a year ago.

The forward-looking measure increased by two points to +4, just two points lower than February 2020.

Major purchases

The major purchases index rose by five points to -19 in February, which represents a 25 point decline compared a year earlier.

Savings Index (not included in the overall measure)

The savings index increased by one point to +19 in February. This is one point lower than the same month a year ago.