Consumer confidence drops five points in January

Consumer confidence decreased by five points to -22 in January, GfK’s latest Consumer Confidence Index has revealed. 

According to the Index, the measure for the general economic situation of the country during the last 12 months is down seven points to -46, which is five points lower than in January 2024.  

At the same time, expectations for the general economic situation over the next 12 months have dropped eight points to -34, which is 13 points worse than January 2024.

Meanwhile the index for the forecast for personal finances during the last year is down three points at -10, which is two points better than January 2024. Over the next 12 months it is also expected to drop three points at -2, which is two points lower than this time last year.

However, the general purchase index is down four points to -20 – the same as this month last year.

Neil Bellamy, consumer insights director, NIQ GfK, said: “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.”