LONDON, Feb 23 Reuters British consumer sentiment fell for the first time in four months in February as households took a gloomier view of their recent personal finances and the broader economic outlook, a survey showed on Friday.

The GfK consumer confidence index, the longestrunning survey of its kind in Britain, dropped by 2 points to 21 in February, below all forecasts in a Reuters poll of economists which had forecast a small rise to 18.

The only component of the index not to fall was households39; expectations for their personal finances over the coming year, which was unchanged at zero.

This metric is key to understanding the financial mood of the nation because confident householders are more likely to spend despite the costofliving crisis, GfK client strategy director Joe Staton said.

All components of the index are up strongly from a year ago, when inflation was only just off a 41year high of 11.1 and market turmoil under the shortlived premiership of Liz Truss was fresh in many households39; minds.

Prime Minister Rishi Sunak, Truss39; successor, will be hoping that a March 6 budget can help narrow the Conservative Party39;s large polling deficit versus the opposition Labour Party, ahead of a national election he is expected to call later this year.

Household consumption in Britain has still not returned to its level before the COVID19 pandemic when adjusted for inflation similar to the picture in some other European countries but in contrast to the…