MNI: UK Feb Cons Confidence Down; Holds Bulk of Jan Rise: GfK

--UK Feb GfK Consumer Conf Index -10 Vs -9 Jan

     LONDON (MNI) - UK consumer confidence moderated only slightly in February,

after delivering the joint-best outturn in eight months last month, a survey by

GfK found.

     The GfK Consumer Confidence Index (CCI) fell by a point to -10 in February

from -9 in January -- the joint-best outturn since May 2017. Although the CCI

has retreated back into sub-zero double figures, the February result did not

give away the majority of January's 4 point rise and was still above the -13

outturn recorded in December. 

     "Ongoing concerns about sluggish household income, rising prices paid by

consumers in the shops, and the prospect of inflation-busting council tax and

interest rate hikes has dented confidence after last month's surprising rally,"

Joe Staton, Head of Market Dynamics at GfK, said. 

     "The two-year trend of negative sentiment - the Overall Index Score has

bounced between zero and -13 since February 2016 - proves consumers feel

pessimistic about the state of household finances and the wider UK economy," he

added. 

     Leading the result in February was a more pessimistic outlook on

households' personal finances over the next 12 months, with that measure falling

by a point to +5, as well as a downgrade to general confidence in the economy.

The index for the general economic situation over the next 12 months fell by 2

points to -26 and remains stuck deep in negative territory.

     The Major Purchases Index, an indicator of consumers' propensity to buy big

ticket items in coming months, also fell on the month, down 1 point to zero. 

     Further extending sentiment of consumer's reluctance to spend, the savings

index followed up January's 6 point rise with an additional 2 point rise in

February, taking it to +12.  

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

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