Consumer confidence increases amid Christmas cheer

GfK’s long-running Consumer Confidence Index increased two points in December but remains firmly in negative territory at minus 22.

Josie Clarke
Friday 15 December 2023 05:44 EST
Expectations for the general economic situation over the next 12 months have increased, according to GfK’s figures (Andrew Matthews/PA)
Expectations for the general economic situation over the next 12 months have increased, according to GfK’s figures (Andrew Matthews/PA) (PA Wire)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Consumer confidence has increased amid Christmas cheer in a small but much-needed boost for retailers, figures show.

GfK’s long-running Consumer Confidence Index increased two points in December but remains firmly in negative territory at minus 22.

Expectations for the general economic situation over the next 12 months increased by one point to minus 25 but has risen to 28 points higher than a year ago.

Notably, confidence in personal finances – reflecting household financial optimism and control over budgets – has recovered from the depressed minus 29 of a year ago to minus 2.

The major purchase index, a mark of confidence in buying big ticket items, also rose, by one point to minus 23.

Joe Staton, client strategy director at GfK, said: “Against the backdrop of flat-lining 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 minus 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 minus 29 reported this time last year.

“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.”

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in