Consumer confidence bounces back

The latest GfK consumer confidence index increased by three points this month, now standing at minus 18, indicating a slight recovery despite remaining in negative territory.

The index measuring changes in personal finances during the last year is up one point at -9; this is seven points better than November 2023.

The forecast for personal finances over the next 12 months is up one point at -1, which is two points higher than this time last year. All measures were up in comparison to last month’s announcement.

Neil Bellamy, Consumer Insights Director, NIQ GfK, said “Consumer confidence has improved by three points in November to reach -18. There was evidence of nervousness in recent months as consumers contemplated the potentially worrying impact of the UK Budget at home, and even the implications of the US presidential election. But we have moved past those events now.

“The biggest change this month is in major purchase intentions, an important measure that has jumped five points from -21 to -16 in the run-up to Black Friday next week. The other four measures, covering personal financial expectations and the wider economy, have registered small increases too. But while 2025 is just around the corner and the New Year often brings optimism, it’s too early to expect significant further improvements in the consumer mood. As recent data shows, inflation has yet to be tamed, people are still feeling acute cost-of-living pressures, and it will take time for the UK’s new government to deliver on its promise of ‘change’.”