--March Result: +3 vs +2 in February
LONDON (MktNews) - A key index of UK consumer confidence rose one point in March as people's perception of the country's economic situation improved, according to the latest monthly survey published by GfK on behalf of the European Commission Friday.
The GfK consumer confidence index edged up to +3 in March from +2 in February. This compares with a score of -2 in March last year.
However, the survey was carried out between March 1 and March 14 before the most recent sharp falls on global stock markets. A different survey carried out last weekend by MORI and published in the Times newspaper yesterday showed a sharp fall in economic optimism.
In the GfK survey, two of the five measures which make up the headline index -- those relating to the general economic situation -- improved both on a monthly and annual basis. The other three measures, relating to household finance and whether it is the right time to make large purchases, have remained unchanged since February.
The mean score for consumers' perception of the country's economic performance over the past twelve months rose by four points to -12 in March from -16 in February and was up three points on March last year.
Looking ahead, people's perception of the country's economic prospects over the coming twelve months also improved, by three points from February and by four points on a year earlier.
The survey also showed there was a marked increase in consumers' expectations of price rises in the next twelve months. The score rose to +82 in March from +72 in February. GfK said this can probably be attributed to the outbreak of foot-and-mouth disease and the consequent increases in meat prices.
Consumers' perceptions of the benefits of making major purchases in the present climate have remained unchanged from February, again registering a score of +20. This compares with a score of +15 in March 2000.
Meanwhile, perceptions of the benefits of saving in the current climate have fallen further to reach a score of +17 in March, after +20 in February and +25 in January.
The measure gauging people's saving intentions over the next twelve months has also fallen again, to +1 in March from February's +4. But this was still four points higher than in March last year.
The survey also that consumers' expectations of a rise in unemployment eased in March. The March score stood at +13, four points lower than in February but one point higher than in March 2000.