UK consumer confidence has continued to fall in February, with data showing that households have less appetite to make major purchases.
The latest S&P Global UK consumer confidence index had a reading of 44.8 in February, which was slightly higher than the 44.6 recorded in January. However, this still signalled a further deterioration in confidence across UK households, as it was below a reading of 50, which represents no change in sentiment from the previous month.
This figure is based on a survey of a panel of 1,500 UK households, which covers a combination of gauges tracking household financial wellbeing, labour market conditions, household spending, savings and debt.
February’s reading remained among the weakest figures seen over the past two years. This latest data comes as the UK continues to grapple with sluggish economic growth and a weakened labour market.
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Maryam Baluch, economist at S&P Global Market Intelligence, said: “The mood among UK households matches the dismal weather seen so far this year across the country.”
“A period of prolonged rain and a dearth of sunshine have no doubt not helped to lift the low spirits seen among households, but there’s more going on here than just bad weather,” she said. “Households are growing increasingly worried about debt in particular, especially as a rising need for credit was met with the steepest decline in availability of loans since August 2024.”
“Households’ appetite for major purchases was impacted by the lack of confidence and debt worries, with sentiment around big ticket expenditure slipping to the lowest in ten months,” Baluch added. “The low appetite to spend bodes ill for the broader impetus to purchase, hinting at a sustained drag on economic growth from sluggish consumer spending in the first quarter.”
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