Consumer confidence creeps up in January
New figures have shown that UK consumer confidence has crept up this month although it still remains in negative territory.
GfK’s long-running Consumer Confidence Index increased by two points to -5.
Joe Staton, head of market dynamics at GfK, said: “Despite strong GDP and record FTSE highs, the combination of Brexit jitters, Blue Monday, and a wobbly pound pushing up prices contributed to keeping UK consumer confidence negative at -5 this month.”
Consumers reported that they are feeling upbeat about their personal financial situation for the coming year as the index relating to the forecast for personal finances over the next 12 months rose by four points to 7.
Meanwhile, the measure relating to expectations for the general economic situation over the next 12 months remained at -23; this is 18 points lower than January 2016.
However, the major purchase index decreased by two points to 10; this is six points lower than this time last year.
Staton added: “Is the decline in the major purchase index this month a foretaste of slowing consumer spending throughout 2017? Rising inflation and weak income growth is forecast to squeeze households’ disposable income, and these two factors could conspire to depress confidence for the year ahead. It’s certainly difficult to see where the oomph will come from over the short term.”
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