There is a drop of 1 point in GfK’s consumer confidence Index to -10, which was in line with expectations and down from -9 in January.

Out of five measures that are used to determine the overall monthly index, three of them decreased, one remained constant and the other increased.

“Ongoing concerns about sluggish household income, rising prices paid by consumers in the shops, and the prospect of inflation-busting council tax and interest rate hikes has dented confidence after last month’s surprising rally,” GfK head of experience innovation Joe Staton said.

After the two year trend of negative sentiment, the overall index score bounced between 0 and -13 since February 2016. It proves the consumers pessimistic feeling about the state of household finances and the wider UK economy.

Due to the drop in the major purchase index and the gloomy start to 2018 for many retailers, shoppers continue to rein in spending.

Confidence remains subdued until the positive impact on consumers despite positive news about growth forecasts and of higher wage increases this year.

“Consumers have good reason to feel jittery and depressed.”

The index measuring changes in personal finances in the last 12 months has increased to one point to zero this month. It is still one point lower than this time last year.

Forecast over personal finances decreased over the next 12 months by one point to +5 this month. This is 2 points higher than February last year.

During the last 12 months the measure for the general economic situation of the country stayed at -29, eight points lower than February last year.

The general economic expectations situation over the next 12 months decreased two points to -26, six points lower year-on-year.

On the other hand, major purchase index decreased 1 point this month to 0, five points lower than February 2017, but the savings index increased 2 points to +12 in February and this is 16 points higher than this time last year.