UK consumer confidence edges up but remains flat year-on-year

UK consumer confidence rose modestly in December, but remained unchanged from a year earlier, underlining continued pressure on household sentiment despite easing inflation.

GfK’s long-running Consumer Confidence Index increased by two points to -17 in December, with all five underlying measures showing month-on-month improvements. The index has been published jointly by GfK and the Nuremberg Institute for Market Decisions since October 2023.

Despite the monthly rise, the headline score was the same as in December 2024, indicating no overall progress in confidence during 2025.

Measures of personal finances showed small improvements. The index tracking changes in household finances over the past year rose by one point to -6, while expectations for personal finances over the next 12 months increased by one point to 2. Both measures were marginally stronger than a year earlier.

Views on the wider economy remained deeply negative. Perceptions of the general economic situation over the past 12 months improved by three points to -40, though this was slightly weaker than in December 2024. Expectations for the economy over the next year also rose by three points to -29, but were three points lower than a year ago.

Consumer willingness to spend showed a sharper improvement. The Major Purchase Index rose by four points to -11 in December, five points higher than last year, suggesting a short-term lift in intentions to make big-ticket purchases.

The Savings Index was unchanged at 24, three points higher than in December 2024. This measure is not included in the overall confidence score.

Neil Bellamy, consumer insights director at GfK, an NIQ Company, said: “It’s tempting to see festive cheer in December’s two-point improvement in consumer confidence. Are we seeing a sigh of relief that the Autumn Budget wasn’t as bad as most had feared? All five measures are up this month led by a four-point jump in major purchase intentions.

“This is a surprise finding for the UK high street because it contrasts with the Black Friday sales slump we reported on earlier this month. Have people decided to spend on Christmas regardless, and worry about 2026 later? However, looking at the full year, the December headline score of -17 is the same as 12 months ago, and on that basis 2025 has been a year of no progress.”

He added: “UK households still face cost-of-living pressures, despite the recent softening in inflation, along with rising economic uncertainty, and those conditions result in weaker consumer confidence. Sadly, consumers resemble a family on a festive winter hike, crossing a boggy field – plodding along stoically, getting stuck in the mud and hoping that easier conditions are not far off.”