Consumer confidence figures bad news for retailers

A closely watched poll of consumer confidence in the UK suggests the recovery in January and February may be more fragile than first hoped.

Gfk's consumer confidence index dropped from -29 in February to -31 in March, expectations had been for a slight improvement to -28.

Commenting on the results, Gfk's head of social research, Nick Moon said: "These figures make depressing reading for the government, especially when you consider that the index has been mired within a couple of points of the present levels for the last nine months.

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"The index shows that consumers are becoming increasingly pessimistic about their personal economic circumstances over the next twelve months, a worrying sign for the already hard-pressed retail sector. "

The Gfk survey is funded by the Europe Union, with similar surveys taking place across the EU. Interviews with 1,998 people were carried out between March 2nd and 11th.

BS