Christmas raises consumer confidence levels

18th December 2023

Consumer confidence has improved in the run-up to Christmas, according to the latest GfK consumer confidence index. 

The index score has risen two points since last month but remains firmly in negative territory at minus 22 – an improvement on the minus 29 reported this time last year. All five components within the survey saw an increase, with the outlook for personal finances moving toward a positive reading.

Joe Staton, Client Strategy Director 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 this month with gains across all key measures.”

“Although the headline figure of -22 means the nation’s confidence is still firmly in negative territory, 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.”