FX.co ★ UK Consumer Confidence Weakens in February

The UK GfK Consumer Confidence Index declined to -19 in February 2026 from -16 in January, erasing the gains of the previous two months and coming in below market expectations for an improvement to -15, as rising unemployment dampened sentiment. The jobless rate rose to 5.2% in the three months to December, its highest level since the pandemic, while youth unemployment jumped to 16.4%, the highest in more than a decade. Neil Bellamy, Consumer Insights Director at GfK, noted that the trend “is increasing concerns about job security, particularly given the backdrop of weak wage growth.” He further warned that “with fewer entry-level opportunities available, those on lower incomes are already feeling the strain and this trend risks undermining the typically more optimistic outlook held by younger age groups.” The overall decline in confidence was mainly driven by weaker perceptions of personal finances, with respondents reporting a four-point deterioration in their assessment of both the past year and the year ahead.