Consumer confidence hits lowest point in over a year

Consumer confidence has fallen to its lowest level in over a year, as shown by figures from GfK’s consumer confidence index.

The index fell five points to minus 22 in January and puts confidence at its lowest level since the end of 2023.

The component of the index that measures sentiment towards the general economic situation over the next year dropped by eight points, while the personal finances index slipped by three points. However, households’ tendency to save increased by nine points, signalling that concerns about job security and the risk of income loss have increased amongst the public.

Neil Bellamy, Consumer Insights Director at NIQ GfK said “New Year is traditionally a time for change, but looking at these figures, consumers don’t think things are changing for the better. This month’s results show a decline in all five measures that make up the Overall Index Score. There are particularly steep falls in consumer views on the wider UK economy, both looking back a year (down seven points) and at what’s in store for the next 12 months (eight points lower). These figures underline that consumers are losing confidence in the UK’s economic prospects.

“While the Savings Index on motivation to save money is not included in the calculation of the Overall Index Score, it’s notable that it has leapt nine points in January to +30. This sharp increase is unwelcome because it’s another sign that people see dark days ahead and are therefore thinking of putting money aside for safety.”