Consumer confidence slips in latest setback for Labour
Consumer confidence slipped slightly in February despite hopes of a turnaround, adding to fears the UK economy could slump this year.
A closely-monitored survey conducted by the research firm GfK said consumer confidence dropped by three points to -19.
The reading reflects dampened spirits among British consumers in what will likely worry Labour strategists keen on centring government campaigns around efforts to tackle the cost of living.
The survey found that people were also more negative about their personal financial situations across separate metrics in the last 12 months and the next 12 months, with both scores dropping by four points.
Brits’ feeling about the general economy over the next 12 months remained unchanged, according to researchers, while sentiment about the general economic situation over the last year improved by one point from January.
The GfK savings index also dropped on the month as Britons likely took notice of banks cutting interest rates in response to the Bank of England’s string of cuts to borrowing costs over the last year.
Neil Bellamy, consumer insights director at GfK, said: “After a modest improvement in recent months, consumer confidence is down three points in February, returning to the level seen in November 2025.
“This decline is mainly driven by weaker perceptions of personal finances — both looking back a year and ahead. Fewer people say that now is a good time to make major purchases and fewer consumers intend to save money.
“Although the rate of inflation is easing, prices continue to rise, forcing many households to prioritise day-to-day spending over longer-term needs. Views on the broader economy remain firmly in negative territory, with consumers anticipating only limited economic growth this year.”
Consumer confidence knocked by rising costs
GfK’s monthly survey was published a day after the Office for National Statistics (ONS) revealed household costs jumped over the last year.
Overall costs rose by 3.6 per cent over 2025, according to researchers, with changes in prices being broadly similar for both low-income and high-income households.
Households with working members saw a higher increase in costs than retired households in the year to December while costs for households with children grew at a faster pace.
ONS analysts suggested private renters were the worst affected group in the UK while outright owner occupiers benefitted from a smaller rise in costs over the year.