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Consumer confidence edged up in December as it increased by one point leaving “some room for optimism” despite the public being cautious with big purchases, GfK revealed.
According to the latest index for the month, consumer confidence increased by one point reaching -17.
Personal financial situation increased by two points reaching -7. Over the next 12 months, GfK predicts that the situation will improve by a further two points and eventually reach +1, which is three points higher than this time last year.
Meanwhile, the measure for the general economic situation of the country during the last 12 months is the same as last month at -39, which is five points higher than in December 2023.
Expectations for the general economic situation over the next 12 months remain unchanged at -26, which is one point worse than December 2023.
Lastly, the Major Purchase Index is also unchanged at -16, seven points higher than this month last year.
Neil Bellamy, consumer insights director, NIQ GfK, said: “Overall, 2024 has been another year of ups and downs in consumer confidence but much less so compared with recent years. In 2024, there was an eight-point difference between the highest and lowest score. In 2023, it was a difference of 23 points, and in 2022 it was 30 points.
“Of all the major events in 2024, the UK General Election was the most impactful, with initial post-election optimism giving way to a large seven-point fall in September as consumers were spooked by Government messages about the state of the economy and difficult choices to be made.”
Bellamy concluded: “Looking at the consumer’s willingness to spend, Black Friday 2024 delivered a vital boost to retailers. Figures from GfK’s point-of-sale data reveal a strong Black Friday sales performance with sales of technology and durables, homeware, and seasonal products up 1.8% in value and 7.7% in volume overall versus Black Friday 2023. Turnover in Black Friday week hit £992m, a figure that’s 110% better than the average week in 2024.”
