28 February 2001, 17:32  TODAY: index of UK consumer confidence

LONDON (MktNews) - A key index of UK consumer confidence fell three points in February but remained positive, according to the latest monthly survey published by GfK on behalf of the European Commission Wednesday. The GfK consumer confidence index dropped to +2 in February from +5 in the previous month. In February 2000, the index also stood at +2, down from +8 in January. Compared with January, each of the five measures contributing to the headline index score fell. But compared with February last year, the indices relating to perceptions of personal finances, the benefits of saving and consumers' intentions to save rose, while those relating to the general economy fell. Expectations for the future of personal finances fell by one point from January to +12, but this was still one point higher than a year earlier. The measure gauging perceptions of the development of personal finances in the past stood at +4 in February, down one point from the previous month but one point higher than a year earlier. Meanwhile, consumers' expectations for the future of the general economic situation fell to a score of -11. This was five points lower than in January and three points lower than in February last year. The measure of people's perception of the development of the general economic situation dropped to -16, down four points from February 2000. More consumers now expect unemployment to rise. GfK put this down to the announcement of redundancies at the Anglo-Dutch steelmaker Corus and continuing publicity surrounding the job losses at carmaker Vauxhall during February. The measure of expectations of higher levels of unemployment rose by five points from January to +17. This is the highest level seen since September 2000 but still less than half the level reached in the winter of 1998/99. Perceptions of the benefits of making major purchases in the present climate fell from January to reach a score of +20 in February, versus +19 in February last year. GfK noted that the index has dropped in February in previous years, a pattern which may be associated with the end of the winter sales, it said. Consumers' perceptions of the benefits of saving in the current climate fell by five points from January to +20, but this was still three points higher than a year earlier. The measure gauging savings intentions over the next twelve months fell by four points from the previous month to +4 but was up five points from the year-earlier level.

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