Consumer confidence remains suppressed amid ‘uncharitable view’ of economy

Consumer confidence remained suppressed in December amid the “continuing uncharitable view on the UK’s general economic situation”, a survey suggests.

GfK’s long-running Consumer Confidence Index increased by one point to minus 17 in December as forecasts for personal finances moved into positive figures at one – three points higher than this time last year.

However expectations for the general economy over the next 12 months remained unchanged at minus 26 – one point worse than last December – suggesting “people don’t know where we are going”, GfK said.

Confidence

The Major Purchase Index, an indicator of confidence in buying big ticket items, also remained unchanged at minus 16, although this is seven points higher than a year ago.

Neil Bellamy, consumer insights director at GfK, said: “Consumer confidence is still far from strong but there is some room for optimism with views on personal finances over the next 12 months up two points versus November and creeping back into positive territory.

“However, with the major purchase measure unchanged at minus 16 in December, consumers are still thinking twice about big-ticket purchases and whether they will bring Christmas cheer.

“We will need to see robust improvements in these perceptions of the economy before we can start talking about sustained improvements in the consumer mood.

“In a nutshell, it’s the continuing uncharitable view on the UK’s general economic situation that’s suppressing consumer confidence.”

Ups and downs

Mr Bellamy added: “Overall, 2024 has been another year of ups and downs in consumer confidence but much less so compared with recent years.

“In 2024, there was an eight-point difference between the highest and lowest score. In 2023, it was a difference of 23 points, and in 2022 it was 30 points. So volatility is down but will it stay that way?”