Financial News: UK Consumer Confidence Unexpectedly Weakens Amid Financial

UK Consumer Confidence Unexpectedly Weakens Amid Financial Worries

(RTTNews) - Consumer confidence in the United Kingdom dropped to a three-month low in February, defying expectations for a modest improvement, amid a deterioration in households' assessment of their personal financial situation, results of a survey showed on Friday.

The U.K. consumer confidence index fell to -19 from -16 in January, the Consumer Confidence Barometer survey by the GfK and the Nuremberg Institute for Market Decisions (NIM) revealed. Economists had expected a mild increase to -15. The latest reading is the lowest since November.

The survey was conducted among a sample of 2,003 individuals aged 16+ in the UK, who were interviewed between February 02nd and 16th.

Among the main subindexes, three decreased, one rose and another was unchanged, the report said.

The subindex reflecting the view on the personal financial situation in the last 12 months dropped by four points to -7, which was the same as February 2025. The measure showing the forecast of personal finances over the next year is fell four points to 2, again the same as in February last year. The index showing consumers' assessment of the past general economic situation gained a point to -44. The gauge for the economic expectations was "firmly in negative territory" at -31, suggesting they hope for "only limited economic growth" this year. Both readings were same as those a year ago.

British households decided this now not a right time for big purchases due to <a href=https://www.rttnews.com/3622605/uk-inflation-lowest-in-10-months.aspx target=_blank >persistently high inflation</a> and the major purchases index shed four points to -14, which was better by three points than last year. They also felt it was more difficult to set aside some money now and the savings index dropped seven points to 21, which was nine points lower from a year ago.

"Unemployment has now reached its highest level in nearly five years, and this is increasing concerns about job security, particularly given the backdrop of weak wage growth," GfK Consumer Insights Director Neil 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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