Consumer confidence edges up in January as December retail sales show small uplift
Consumer confidence has edged up in January despite people “remaining unconvinced” about the economic outlook.
GFK has reported that its long-running Consumer Confidence Barometer has risen by one point to -16.
Subscribe to TRBCommenting on the uplift, Neil Bellamy, consumer insights director at GfK, an NIQ Company, said: “January 2026 brings an unwanted anniversary, marking 10 years since consumer confidence was last in positive territory.
“Even with a one-point increase in headline confidence this month to -16, we remain a long way from consumers feeling that better days are around the corner.”
GfK’s index measuring changes in personal finances over the last 12 months has increased by three points to -3 while the forecast for personal finances over the next year is up four points to 6.
The major purchase index is also up, rising by one point to -10, which is ten points better than last year.
However, expectations for the general economic situation over the next 12 months are down two points in January to -31.
Bellamy said: “What we’re witnessing now is a return to that mindset: people feel they can manage their own finances, but they remain unconvinced about the wider economic outlook.
“Let’s be clear – this isn’t optimism; it’s resilience. Consumers are once again focusing on what they can control – their own spending and saving – while confidence in the wider economy remains low.
“To many consumers, the UK economy is beginning to resemble an untethered boat drifting slowly out to sea.”
Meanwhile, figures released by the Office for National Statistics show that retail sales volumes edged up 0.4% in December, following a fall of 0.1% in the previous month.
Non-store retailers’ volumes increased with online jewellers reporting that demand for precious metals picked up.
There was also a small rise for supermarkets and sales of automotive fuel, although non-food stores, (the total of department, clothing, household, and other non-food stores) declined by 0.9% on the month.
