In December, UK consumer confidence showed a promising uptick, gaining two points in GfK’s Consumer Confidence Index. Building on the six-point increase observed in November, there’s speculation about a potentially brighter consumer outlook for 2024. However, it’s crucial to note that the overall confidence reading still reflects a relatively weak sentiment.
Commenting on the results, Joe Staton, Client Strategy Director at GfK, stated, «Although the headline figure of -22 indicates the nation’s confidence is still in negative territory, optimism for our personal finances over the next 12 months has notably recovered from the depressed -29 reported this time last year.»
The recovery in the personal finance outlook is significant, reflecting increased optimism and a perceived sense of control over individual budgets. Despite the ongoing challenges posed by the cost-of-living crisis, the gradual movement toward positive territory in the personal finance measure is seen as an encouraging sign for the upcoming year.
In addition to the modest gain in consumer confidence, other key indicators also showed positive movements. The nation’s current Personal Financial Situation rose two points month-on-month to -14, marking a notable improvement compared to the same period last year. The Forecast for Personal Finances over the next 12 months increased by one point to -2, representing a substantial 27-point improvement from December 2022.
The measure for the General Economic Situation of the country during the last 12 months saw a five-point rise compared to November, standing at -44, a significant 22 points higher than in December 2022. Expectations for the General Economic Situation over the next 12 months also increased by one point to -25, indicating a noteworthy 28-point improvement from the previous year.
Furthermore, the Major Purchase Index rose by one point to -23, marking an 11-point increase from the same month last year. The Savings Index also saw a two-point increase, reaching +27, seven points higher than the corresponding period last year. This positive trajectory suggests a cautiously optimistic outlook for UK consumers in the months ahead.
