Consumer confidence rebounds from pre-budget anxieties

Consumer confidence is recovering from a dip caused by pre-budget anxieties, with the GfK index rising to -17 in December, following a three-point increase in November. Despite concerns over inflation due to rising prices from businesses, the data indicates a growing optimism among consumers regarding their finances and a willingness to spend.

Neil Bellamy, Consumer Insights Director, NIQ GfK, said “In December, consumers adopted the holding pattern we’ve seen for much of 2024, with the one-point increase in the overall Index to -17 very close to the 2024 average of -18. Consumer confidence is still far from strong but there is some room for optimism with views on personal finances over the next 12 months up two points versus November and creeping back into positive territory (at +1).

“This echoes the encouraging positive scores we saw in this measure from March to August. However, with the major purchase measure unchanged at -16 in December, consumers are still thinking twice about big-ticket purchases and whether they will bring Christmas cheer. Significantly, views on the economy are unchanged from November (-39 over the last 12 months; -26 for the next 12 months) which suggests people don’t know where we are going. We will need to see robust improvements in these perceptions of the economy before we can start talking about sustained improvements in the consumer mood. In a nutshell, it’s the continuing uncharitable view on the UK’s general economic situation that’s suppressing consumer confidence.”