Consumer confidence has dropped again, wiping out modest improvements seen in December and January as shoppers worry about their personal finances and widespread job losses.
Confidence fell three points to -19 in February, as consumers’ perceptions of their own financial situation in the past year soured, dropping four points to -7 in GfK’s latest Consumer Confidence Barometer. Confidence has been stuck at between -19 and -16 since June 2025.
Shoppers’ personal outlook for the next 12 months – which had been by far the most positive of all measures at a positive 6 points – fell to 2.
Perceptions of the general economic situation over the past year remained strongly negative at -44, with the next 12 months’ outlook also stable at -31.
With fewer people confident in their ability to make major purchases (down 4 points), and fewer intending to save money (down 7 points), many households are looking to survive the present rather than think too far ahead, according to GfK consumer insights director Neil Bellamy.
“Although the rate of inflation is easing, prices continue to rise, forcing many households to prioritise daytoday spending over longer-term needs,” he said.
“Views on the broader economy remain firmly in negative territory, with consumers anticipating only limited economic growth this year.”
Unemployment has now reached its highest level in nearly five years at 5.2%, according to ONS figures. Redundancies are now at their highest level for over a decade, pandemic excluded.
Given the backdrop of a poor jobs market and weak wage growth, shoppers are once again worried about their job security, Bellamy said.
“With fewer entry-level opportunities available, those on lower incomes are already feeling the strain, and this trend risks undermining the typically more optimistic outlook held by younger age groups.”
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