In a surprising turn of events, the UK’s consumer confidence has received a positive jolt, potentially signaling a festive boost in retail sales, as reported by data company GfK. The recently released November figures showcase a noteworthy rebound, with the Consumer Confidence Index climbing by six points, countering recent end-of-year uncertainties. Despite ongoing concerns about the cost of living, the overall reading stands at -24, marking a welcome recovery from October’s nine-point dip.
All five measures in the monthly report exhibited improvement compared to the previous month, though many remain in negative territory. The index reflecting changes in personal finances over the last year increased by three points to -16, a substantial eight-point improvement from November 2022. Additionally, the forecast for personal finances over the next 12 months rose by five points to -3, indicating a significant 26-point increase from the same period last year.
Regarding the general economic situation, positive shifts were observed, with the index for the last 12 months increasing by five points to -49, an 18-point improvement from November 2022. Expectations for the general economic situation over the next 12 months also saw a six-point increase to -26, showcasing a remarkable 32-point improvement from the previous year.
The major purchase index witnessed a notable increase of 10 points to -24, signifying a 14-point boost compared to the same period last year. Similarly, the savings index rose by four points to +29, marking an eight-point improvement from the previous year.
Joe Staton, GfK’s Client Strategy Director, commented on the findings, stating, “Recent ups and downs in confidence have underlined the nation’s topsy-turvy economic mood… Although the Overall Index Score is still tracking firmly in negative territory, it is good to see that consumers are more optimistic about their personal financial situation.”
He added, “The dramatic 10-point jump in our major purchase sub-measure, reversing some of the worrying 14-point drop we saw last month, will be good news for retailers looking to benefit from Black Friday and Christmas. Despite the acute cost-of-living pressures, many would still like to loosen their purse strings just a little so they can enjoy that feel-good factor we all associate with the festive season.”
