{"id":113468,"date":"2021-02-19T00:52:12","date_gmt":"2021-02-19T00:52:12","guid":{"rendered":"https:\/\/precoinnews.com\/?p=113468"},"modified":"2021-02-19T00:52:12","modified_gmt":"2021-02-19T00:52:12","slug":"uk-consumers-most-confident-since-pandemic-struck-gfk","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/uk-consumers-most-confident-since-pandemic-struck-gfk\/","title":{"rendered":"UK consumers most confident since pandemic struck – GfK"},"content":{"rendered":"
LONDON (Reuters) – British consumers are their most confident since the COVID-19 pandemic struck almost a year ago, buoyed by hopes that the country\u2019s fast COVID-19 vaccinations programme will boost the economy, a survey showed on Friday.<\/p> The overall consumer confidence index from market research firm GfK rose five points to -23, due mostly to a 14-point improvement in views about the economy over the next 12 months.<\/p>\n A Reuters poll of economists had pointed to a much smaller improvement in the overall index to -27.<\/p>\n Joe Staton, GfK\u2019s client strategy director, warned that it was more realistic to look at the challenges ahead than think about a return to normality.<\/p>\n \u201cWe need to be cautious because the positive tailwinds of the vaccination roll-out are being met by the very strong headwinds of unemployment, the threat of inflation and the difficulty that many face in affording day-to-day living costs,\u201d he said.<\/p>\n Finance minister Rishi Sunak is expected to announce more jobs support in a budget plan on March 3.<\/p>\n Prime Minister Boris Johnson is moving cautiously with regard to lifting social distancing restrictions that contributed to the economy shrinking by 10% last year, the most in three centuries.<\/p>\n But Sunak is expected to start weaning the economy off his nearly 300-billion-pound ($419 billion) emergency rescue programme as soon as he can.<\/p>\n In February last year before the pandemic hit, GfK\u2019s overall confidence index stood at -7.<\/p>\n Britain went its third national lockdown last month which has forced many businesses to close.<\/p>\n But the prospects for a recovery in the economy have improved as the country rolls out Europe\u2019s fastest COVID-19 vaccination programme to date.<\/p>\n GfK\u2019s measure of how willing consumers are to make major purchases improved to -19 but remained well below its level of +6 in February 2020.<\/p>\n The Bank of England is watching closely to see if households go on a spending spree when the current lockdown is lifted after an enforced period of savings while they were stuck at home.<\/p>\n ($1 = 0.7158 pounds)<\/p>\n