UK consumer confidence improves in March - GfK

The UK consumer is feeling slightly more confident about personal finances and the general economic situation as recent improvements in wage growth and inflation boost spirits.

The long-running consumer confidence index from GfK climbed three points over the month of March but still remained negative at -7, worse than at this stage last year.

However, all five of the constituent measures improved in March compared to February and January.

"Spring is in the air," said GfK's Joe Staton, pointing to improvements in consumers' views on personal finances, the general economy over the last year and next year, and on current major purchase intentions.

The general economy measures both remain firmly in the negative, however. Consumers' view of the past 12 months rose three points to -26 and for the coming 12 months increased four points to -22.

"The prospect of wage rises finally outstripping declining inflation, high levels of employment with low-level interest rates, and finally some movement on the Brexit front appear to have boosted our spirits," Staton said.

"It’s still a little early to be talking about green-shoots, and the core score is of course still negative, but this is definitely a movement in the right direction. Consumers are feeling a tiny spring in their step – let’s see next month if April showers dampen the mood."