Consumer confidence in February was positive for the first time since September 2022’s disastrous mini-Budget, according to a monthly survey by YouGov for the Centre for Economics and Business Research (Cebr).
The YouGov/Cebr Consumer Confidence Index was 100.4 in February, with a score above 100 indicating positive sentiment. The index had plunged by 4.2 points in September - the month of the mini-Budget - before falling another 1.1 points in October.
While the index improved in subsequent months, the overall score remained negative.
“The turnaround in consumer sentiment adds to the more positive economic picture that has emerged since the start of the year, partly driven by a much more benign outlook for energy prices,” Kay Neufeld, director and head of forecasting and thought leadership at Cebr, said.
“Nevertheless, the crunch on households’ budgets remains in place with both scores under this sub-indicator edging up only marginally and remaining well below their long-run averages.”
The index is based on more than 6,000 interviews, which include questions about household finances, property prices, job security, and business activity.
While overall confidence was positive, opinions on household finances painted a much bleaker picture. The index for confidence in household finances over the previous 30 days was up by just 0.4 points to 68.4, while for household finances over the next 12 months, the confidence index was just 68.1, up by 0.7 points.
Confidence in house prices, job security and business activity was much higher, however, helping to boost the index overall.
The new data comes just ahead of Jeremy Hunt delivering the 2023 Spring Budget. Hunt has already announced an extension to the energy price guarantee and is expected to also make announcements on childcare, benefits reform and pensions allowances in his “Budget for growth”.
