# UK consumer mood hits one-year high, but financial gloom persists
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-03-24
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: UK Consumer Confidence Rises to a Year-High Despite
Meta Description: British consumer confidence rose to its highest level in a year, despite persistent gloom over personal finances. Learn more in this survey.
URL: https://financedigest.com/uk-consumer-mood-hits-one-year-high-but-financial-gloom-persistshtml

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(Reuters) – British consumer confidence rose this month to its highest level in a year, helped by improving sentiment around the economy and despite persistent gloom over personal finances, a survey showed on Friday.

Market research firm GfK’s consumer confidence index rose to -36 in March, in line with the consensus in a Reuters poll of economists and up from -38 in February and its highest since March 2022.

While still at levels historically associated with recessions, the improvement chimed with other gauges of Britain’s economy that suggest it could sidestep a long-lasting downturn that had been widely predicted last year.

Still, the GfK survey showed no [improvement in its gauges of personal finances](https://www.financedigest.com/5-ways-to-improve-your-business-finances.html "5 Ways to Improve Your Business Finances"), which are linked most strongly to household expenditure.

A small improvement in the overall index score this month masks continuing concerns among [consumers about their personal financial](https://www.financedigest.com/50-of-consumers-wont-spend-more-than-20-minutes-applying-for-financial-products-online.html "50% of consumers won’t spend more than 20 minutes applying for financial products online") situation,” said Joe Staton, client strategy director at GfK.

Wages are not keeping up with [rising prices and the cost-of-living crisis](https://www.financedigest.com/bank-shares-rise-after-credit-suisse-rescue-eases-crisis.html "Bank shares rise after Credit Suisse rescue eases crisis") remains a stark reality for most,” he added.

[Consumer price inflation](https://www.financedigest.com/euro-zone-consumers-more-optimistic-on-inflation-ecb-survey-shows.html "Euro zone consumers more optimistic on inflation, ECB survey shows") rose unexpectedly to 10.4% last month, with food and drink costs rising at the fastest rate since 1977, according to official data earlier this week.

The [Bank of England](https://www.financedigest.com/bank-of-england-fines-former-tsb-executive-over-2018-it-failure.html "Bank of England fines former TSB executive over 2018 IT failure") raised interest rates on Thursday by another quarter of a percentage point, adding to the strain on budgets for many households.

Just having enough money to live right and [pay the bills](https://www.financedigest.com/uks-sunak-to-halve-support-that-helps-businesses-pay-fuel-bills-the-times.html "UK’s Sunak to halve support that helps businesses pay fuel bills -The Times") remains the number one concern for consumers across the UK,” Staton said.

(Reporting by Andy Bruce; editing by David Milliken)


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