UK consumer confidence index fell 3 points to minus 19 in February 2026, reversing two months of gains
The decline contrasts with other positive economic indicators including private sector growth and retail sales increases
Rising unemployment to 5.2% (post-pandemic high) and youth unemployment to 16.1% contributed to the confidence drop
Economists had expected improvement to minus 15, highlighting the unexpected nature of the decline
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UK consumer confidence reversed gains from the past two months in February 2026, with the GfK consumer confidence index dropping by 3 points to minus 19, according to research released on Friday, as rising unemployment to a post-pandemic high of 5.2 percent raised concerns about job security and economic prospects. The unexpected decline comes after economists polled by Reuters had predicted the indicator would climb for the third consecutive month to reach a one-and-a-half-year high of minus 15. The consumer confidence measure, which assesses how people view their personal finances and broader economic conditions, showed particular weakness in perceptions about personal finances, with a four-point drop regarding both the past year and the year ahead. This consumer confidence dip contrasts with other positive economic indicators for the UK at the start of 2026, including the fastest private sector growth since April 2024 and a record public sector budget surplus in January. Neil Bellamy, consumer insights director at GfK, attributed the confidence fall primarily to rising unemployment, particularly among youth which reached 16.1 percent—the highest level in more than a decade, noting that 'with fewer entry-level opportunities available, those on lower incomes are already feeling the strain.'
Consumer spending is the total money spent on final goods and services by individuals and households.
There are two components of consumer spending: induced consumption (which is affected by the level of income) and autonomous consumption (which is not).
An economic indicator is a statistic about an economic activity. Economic indicators allow analysis of economic performance and predictions of future performance. One application of economic indicators is the study of business cycles.
Unemployment is the state of not being in paid employment or self-employment but rather currently available for work. Unemployment is measured by the unemployment rate, which is the number of people who are unemployed as a percentage of the labour force (the total number of people employed above a s...
UK consumer confidence survey gives up gains of past 2 months on x (opens in a new window) UK consumer confidence survey gives up gains of past 2 months on facebook (opens in a new window) UK consumer confidence survey gives up gains of past 2 months on linkedin (opens in a new window) UK consumer confidence survey gives up gains of past 2 months on whatsapp (opens in a new window) Save UK consumer confidence survey gives up gains of past 2 months on x (opens in a new window) UK consumer confidence survey gives up gains of past 2 months on facebook (opens in a new window) UK consumer confidence survey gives up gains of past 2 months on linkedin (opens in a new window) UK consumer confidence survey gives up gains of past 2 months on whatsapp (opens in a new window) Save Valentina Romei in London Published February 27 2026 Jump to comments section Print this page Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. UK consumer confidence has reversed the gains of the past two months amid rising unemployment, raising questions about whether a recent improvement in economic indicators will continue. The GfK consumer confidence index — a measure of how people view their personal finances and broader economic prospects — dropped by 3 points in February to minus 19, the research group said on Friday. Economists polled by Reuters had expected the indicator to climb for the third month in a row to a one-and-a-half-year high of minus 15. The fall in consumer confidence, which is closely monitored as an indication of future consumer spending, contrasts with other indicators pointing to improvements in the UK economy at the start of the year. In February, the S&P Global purchasing managers’ index signalled the fastest rate of growth in the private sector since April 2024. In January, the public sector registered a record budget surplus and retail sales rose sharply. Neil Bellamy, consumer insights director ...
