Feature: GfK Confi dence Barometer - MDA
GfK’s UK Consumer Confi dence Barometer (CCB) has improved since reaching its lowest point of -49 in September 2022. In August 2025, the overall Index score of -17 was the best this year, signalling a moderate rebound in sentiment. However, consumer confi dence continues to fl uctuate within a narrow band, with no indication that it is about to break into more optimistic territory.
O
ne of the questions feeding into the CCB concerns consumers’ personal
fi nancial situation. Respondents remain positive about their own fi nances over the next 12 months, with a score of +5 - only one point lower than in August 2024 - suggesting a slightly greater level of personal fi nancial optimism. However, the broader economic outlook remains low: the view of the general economic situation over the next year is -30, compared with -15 this time last year. Concerns include ongoing cost-of-living pressures, potential tariff escalations, and geopolitical risks. The Major Purchase Index, which measures
willingness to make higher-value purchases such as furniture or electrical goods, remains in negative territory at -13 in August, indicating continued consumer hesitancy unless purchases are deemed essential. Meanwhile, the Savings Index is the strongest positive measure at +30. This cautious spending environment has steered focus towards value- driven propositions, cost-saving measures, and necessity-driven purchases. As many of its products are essential for daily household operations, the MDA category remains comparatively resilient within the tech and durables market. Rising living costs, particularly energy bills,
have made cost-saving considerations more prominent. In our gfknewron Consumer Intelligence survey, energy effi ciency has consistently been one of the top two factors infl uencing purchases over the past fi ve years for washing machines, refrigeration, cooking, dishwashers, and tumble dryers. More than half (56%) of consumers rated energy effi ciency as the most important feature for washing machines, with 49% rating it as the most important feature for refrigerators in the fi rst quarter of 2025. Consumer sentiment and government
legislation often go hand in hand. Public awareness of energy consumption began with the fi rst EU measure on household appliances in 1976. Improvements in energy-effi cient
Autumn 2025
technology later led to the Energy Labelling framework, which categorises appliances by class (A-G) and colour, with dark green as the most effi cient and red as the least. Complications arose as products labelled
A+ to A+++ emerged, driven by technological advances and manufacturers highlighting environmental benefi ts. Government-backed initiatives then played a crucial role in regulating and encouraging production of more energy- effi cient products. In 2021, the new EU Energy Effi ciency scale was introduced for certain categories— including refrigeration, freezers, washing machines, and dishwashers . This rescaling eliminated A+ to A+++ labels, making A the most energy effi cient. The new label also included a QR code for product information and clearer explanations of energy use. As the scale tightened, G and F-rated
products began to phase out. F-rated products fell 71% in H1 2025 versus H1 2024, driven by technological improvements and new entrants reducing average prices by 12.3%. E-rated models grew 22% in volume, now representing 43% of volume and 40% of value. Meanwhile, A-rated products rose 81% in volume, accounting for 31% of overall MDA 4 units.
So, what’s happening now? Technological advances and legal diff erences across product categories have driven higher demand for A-rated washing machines: 70% of units sold in H1 2025 were A-class. In washing machines—and to a lesser extent in refrigeration—labels beyond A are now
PEOPLE MAKE THE DIFFERENCE
concentrated in the A-10% to A-40% range. It’s worth noting that this discussion has
focused on MDA. Other categories were not included in the 2021 EU label. However, from 1 July 2025, tumble dryers became the fi fth MDA category to be rescaled to the EU label, with A class as the most energy effi cient. This update may accelerate sales of heat pump tumble dryers, which are already gaining popularity. For GB, these are EU regulations only, and no
offi cial changes have been announced for local products. Time will tell how this may infl uence the GB market, but we expect some alignment as manufacturers streamline production.
References: • https://energy-effi
cient-products.ec.europa.eu/ ecodesign-and-energy-label/understanding- energy-label/history-energy-labelling-eu_en
•
https://www.gov.uk/guidance/the-energy- labelling-of-products#:~:text=Energy%20 labels%20for%20certain%20 products,replace%20existing%20labels%20 to%20dealers.
•
https://www.euronics.co.uk/new-energy-label •
https://energy.ec.europa.eu/news/ new-measures-more-energy-effi cient- household-tumble-dryers-1-july-2025-07-01_en
• GfK UK Consumer Confi dence Barometer: Consumer confi dence up two points to -17 in August
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