UK consumer confidence improves but remains subdued ahead of Christmas
Consumer confidence edged up ahead of Christmas but remains subdued in the face of cost-of-living pressures, according to new figures.
GfK’s long-running Consumer Confidence Index improved by two points to minus 17 for December.
The research showed that all five of the survey’s measures increased for the month, bouncing back from a weak November which had been impacted by pre-Budget caution.
Neil Bellamy, Consumer Insights Director at GfK, said: “It’s tempting to see festive cheer in December’s two-point improvement in consumer confidence.
“This is a surprise finding for the UK high street because it contrasts with the Black Friday sales slump we reported on earlier this month.”
Industry data pointed to weakness on the high street earlier in the run-up to Christmas, the data from the CBI showing the sharpest fall in sentiment among retailers for 17 years.
The GfK figures showed a four-point improvement in its major purchase index – an indicator of confidence in buying big ticket items – to minus 11.
Measures related to shoppers’ views about the wider economic outlook also improved slightly for the month.
Bellamy said: "UK households still face cost-of-living pressures, despite the recent softening in inflation, along with rising economic uncertainty, and those conditions result in weaker consumer confidence.
"Sadly, consumers resemble a family on a festive winter hike, crossing a boggy field – plodding along stoically, getting stuck in the mud and hoping that easier conditions are not far off."
