UK consumer confidence ticks higher - GfK

UK consumer confidence nudged modestly higher in December, a long-running survey showed on Friday.

The latest consumer confidence index from GfK was -17, up one point on November and continuing a run of modest increases. However, it was only five points stronger than December 2023, when the index was -22.

The index for expectations about the economy over the next 12 months was unchanged at -26.

The major purchase index was also flat, at -16. "Consumers are still thinking twice about big ticket purchases, and whether they will bring Christmas cheer," said Neil Bellamy, consumer insights director at GfK

However, the personal financial situation measure for the coming year improved by two points, nudging back into positive territory at 1 and echoing the more upbeat trends seen in spring and summer.

Bellamy said: "In December, consumers adopted the holding pattern we’ve seen for much of 2024, with the one point increase to -17 very close to the 2024 average of -18.

"Consumer confidence is still far from strong, but there is some room for optimism.

"We need to see robust improvements in these perceptions [about the economy] before we can start talking about sustained improvements in the consumer mood."

Looking at 2024 as a whole, Bellamy said the year had been characterised by "ups and downs" in consumer confidence, though by less than in previous years.

"Volatility is down, but will it stay that way?" he said. "Of all the major events in 2024, the general election was the most impactful, with initial post-election optimism giving way to a large seven-point fall in September, as consumers were spooked about government messages about the state of the economy."