The index said that the measure covering changes in personal finances during the last year was down two points at -9, albeit four points better than March 2024.

The forecast for personal finances over the next 12 months dropped one point but remained in positive territory with a score of one, which is one point worse than this time last year.

However, the measure for the general economic situation of the country during the last 12 months was up two points to -42 and three points better than in March 2024.

Expectations for the general economic situation over the next 12 months have also improved two points to -29, but the total score is six points worse than in March 2024.

The Major Purchase Index, which covers whether now is the right time to make a major purchase, was unchanged at -17 and 10 points better off than this month last year.

The Savings Index, which relates to whether now is a good time to save money, tumbled five points in March but had an overall positive score of 25, which is the same as March 2024.

The findings are based on a survey of 2,005 UK adults carried out between 28^th February and 13th March.

Neil Bellamy, consumer insights director at NIQ GfK, said: “Since September last year, the headline has been in a range of -17 to -22. This is more positive than mid-2022 into early 2023 at the height of the cost-of-living crisis, which delivered the worst headline scores ever including nine months at -40 or worse. 

“But we are still below the long-term average of -10. If consumer confidence were a patient languishing in a hospital bed, a doctor would say there is little evidence of a recovery as yet. Where do we go from here? The current stability is to be welcomed but it won’t take much to upset the fragile consumer mood.”