Consumer confidence improves in December
Consumer confidence has seen an uptick this month as people feel more optimistic about their personal finances in the run-up to Christmas.
GfK’s long-running Consumer Confidence Index has increased by two points to -22 in December after all five measures rose compared to last month. However, the index is still in negative territory.
Joe Staton, client strategy director at GfK, said: “Against the backdrop of flatlining economic growth, interest rates at a 15-year high, and price rises potentially eroding disposable income for years to come, the Consumer Confidence Index shows a modest improvement.”
GfK’s measure for people’s expectations for the general economic situation over the next 12 months has risen by one point to -25 while its the major purchase index has edged up one point to -23.
Meanwhile, the forecast for personal finances over the next 12 months has increased by one point to -2, which is 27 points higher than this time last year.
Staton said: “Optimism for our personal finances for the next 12 months shows a notable recovery from the depressed -29 reported this time last year. Recovery in this number is important as it best reflects household financial optimism and control over personal budgets.
“Despite the severe cost-of-living crisis still impacting most households, this slow but persistent movement towards positive territory for the personal finance measure looking ahead is an encouraging sign for the year to come.”