Warning issued over UK’s consumer confidence despite January rise
Consumer confidence up slightly as Brits lean on financial ‘resilience’
- The GfK Consumer Confidence Index increased by one point to minus 16 in January, marking 10 years since it was last in positive territory.
- The slight rise is attributed to household “resilience” concerning personal finances, with confidence in this area improving by four points for the next year.
- Despite this, expectations for the general economic situation over the coming 12 months fell by two points to minus 31.
- The Major Purchase Index, which measures confidence in buying big-ticket items, rose by one point to minus 10.
- GfK's consumer insights director stated that the improvement reflects consumers focusing on what they can control, describing the sentiment as “resilience” rather than “optimism” about the wider economy.