Consumer confidence in the U.K. slipped 1 point to negative 10 in February after climbing 4 points to negative 9 in January, a GfK survey reported.
The overall index score and major purchase index fell in February, the general economic situation was steady at negative 29 and the personal financial situation and savings indexes increased slightly month over month.
Joe Staton, head of experience innovation U.K. at GfK, said rising prices, sluggish household income and the prospect of increases in interest rate and council tax council tax have dented consumer confidence.
He said the overall index score, which ranged between zero and negative 13 since February 2016 indicates consumers feel pessimistic about the state of household finances and the wider U.K. economy.
Consumers reined in spending as shown by the 1-point decrease to zero in the major purchase index in February; 5 points lower than February 2017.
Expectations for the general economic situation over the next 12 months decreased 2 points to negative 26, 6 points lower than in February 2017 despite upgraded growth forecasts and the promise of higher wage increases in 2018.
Staton expects confidence will remain subdued until consumers experience the benefits in their income.
