UK consumer confidence continued to fall in February, data has shown, though separate figures released this week offered some more upbeat news on the country’s economy.
The latest S&P Global UK consumer confidence index, published Monday, 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.
February’s reading remained among the weakest figures seen over the past two years. The data comes as the UK continues to grapple with sluggish economic growth and a cooling labour market.
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.”
“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 said.
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However, there were some bright spots in UK economic data released this week. On Wednesday, data from the Office for National Statistics (ONS) showed that UK inflation fell to 3% in January from 3.4% in December, its lowest point since March 2025.
Two more economic data releases from the ONS on Friday also offered further positive news. UK retail sales rose 1.8% in January month-on-month, which was well ahead of consensus estimates of 0.2% growth.
In addition, ONS data showed that the UK recorded a budget surplus of £30.4bn in January, which was the highest of any month since records began and was ahead of consensus estimates of £23.8bn.
Paul Dales, chief UK economist at Capital Economics, said: “The big reduction in public borrowing and surge in retail sales in January support other evidence that the economy started the year looking a lot healthier and will give the chancellor something positive to point to in her fiscal statement on 3 March.”
Earlier this week, we asked Yahoo Finance UK readers if they were putting off big spending decisions until the economic situation improves. We received 203 votes, with 58% of respondents saying that they were, while 34% were not and 8% were undecided on the matter.
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