Despite the weakening economic conditions, the index increased from 41 in January to 43 in February.
Consumers became more optimistic about the future economic and labour market conditions during the month and this has been the main reason for the rise in overall confidence in February.
In contrast, the spate of bad economic news and reported job losses in major industries may have dampened consumers' perceptions of where we are now. Confidence in the present situation dropped for the eighth consecutive month in February, leaving the index at 22, less than a third of its level last year.
Consumers' feelings about spending, particularly on household goods, continue to be resilient. Only 16% think that now is a bad time to buy goods like fridges and hi-fis, which could be a reflection on the significant discounts available. In addition, more consumers think it's a good time to make a major purchase. Falling house prices and bigger discounts on new cars may well have affected this, but it remains to be seen how quickly this sentiment will lead to larger numbers of transactions given the current economic conditions.
