UK consumer confidence improved slightly in March, with the GfK Consumer Confidence Index rising to -19 from -20, marking a three-month high. Despite this modest gain, sentiment remains below the long-term average of -10, reflecting continued economic uncertainty.

The survey showed a two-point increase in expectations for the economy over the next 12 months, though consumers remained less optimistic about their personal finances.

While stability in sentiment is a positive sign, Neil Bellamy, consumer insights director at GfK, warned that “it won’t take much to upset the fragile consumer mood.”

The data comes as Chancellor Rachel Reeves prepares to announce fresh economic and budget forecasts, with potential spending cuts on the horizon, in the ‘Spring Statement’. Reeves is scheduled to deliver the UK’s Spring Statement on Wednesday, 26 March 2025, around 12:30 PM GMT.

The UK Spring Statement is a fiscal update delivered by the Chancellor of the Exchequer, usually in March, outlining the state of the economy and public finances. It is a mini-budget rather than a full fiscal event and typically includes:

• Economic Forecasts: Updates from the Office for Budget Responsibility (OBR) on GDP growth, inflation, and debt levels.
• Spending & Revenue Updates: Adjustments to tax revenues, borrowing, and government spending.
• Policy Announcements: Sometimes includes minor tax or spending changes, but major fiscal measures are usually reserved for the Autumn Budget.
• Inflation & Cost of Living Response: May address key economic challenges like inflation, energy prices, and public sector pay.

Difference from the Budget

• The Autumn Budget (main event) sets major tax and spending decisions.
• The Spring Statement is more of an update, though it can include new measures in urgent situations.