Consumer Confidences Rises Slightly
Small Business News – 27th February 2009
For those small businesses that rely on consumers to keep trading there’s a little ray of sunshine in the fact that consumer confidence rose slightly in February according to figures from pollsters GfK NOP.
The poll, on behalf of the European Commission, found that consumer confidence, whilst 18 points down on the same time last year, rose a meagre 2 points over last month’s low of -37.
Whilst confidence is up but still low, the good news is that consumer perceptions of the economic situation over the next 12 months have improved. The basic premise is that this time next year things will be better.
Savings & pensions may be suffering from the low interest rate but reduced monthly mortgage payments may have put a few pounds back into consumer pockets, allowing them to spend a little more, if albeit cautiously.
Rachael Joy of the Consumer Confidence team at GfK NOP said:
"Consumer confidence remains very fragile, although rose slightly from its January figure. The public certainly recognise that it’s been a tough year – with the lowest ever score for the general economic situation over the past 12 months, however, looking to the future, we saw an uplift in consumers’ views of both their personal situation and the general economy over the next 12 months. This suggests a growing number of consumers believe that things will be better this time next year.”
Forecasting the climate for major purchases and the personal economic situation, GfK NOP finds that consumers are indicating that they see improvements in these areas over the coming year