Credit, Collections & Insolvency News
Consumer confidence improved in December, rising to minus 17 from minus 19, according to data. from GfK.
The index measuring changes in personal finances over the last 12 months has increased by one point to -6. This is one point higher than December 2024. The forecast for personal finances over the next year is up one point to 2. This is an improvement of one point compared to this time last year.
The measure for the country’s general economic situation over the last 12 months increased by three points to -40. This is one point lower than December 2024. Expectations for the general economic situation over the next 12 months are up three points in December to -29. This is three points worse than this time last year.
Neil Bellamy, Consumer Insights Director at GfK, an NIQ Company, said “It’s tempting to see festive cheer in December’s two-point improvement in consumer confidence. Are we seeing a sigh of relief that the Autumn Budget wasn’t as bad as most had feared? All five measures are up this month led by a four-point jump in major purchase intentions. 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. Have people decided to spend on Christmas regardless, and worry about 2026 later?
“However, looking at the full year, the December headline score of -17 is the same as 12 months ago, and on that basis 2025 has been a year of no progress. 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.”
