UK consumer confidence delivers modest improvement by two points but remains at historic low.

According to the latest GfK Consumer Confidence Index, overall figures increased two points in December to -42. Three measures were up, one was down, and one was unchanged in comparison to the November 18th announcement.

The Major Purchase Index, which includes big ticket items such as furniture, is up four points to -34; this is 28 points lower than this month last year.

The measure for the general economic situation of the country during the last 12 months is up one point at -66; this is 27 points lower than in December 2021.

The index measuring changes in personal finances over the last 12 months decreased four points to -28; this is 23 points worse than December 2021. 

The Savings Index is down one point this month at +20; this is six points better than this time last year.

Joe Staton, Client Strategy Director GfK, says: “December marks the eighth month in a row in which the Index has bumped along at -40 or worse, the first time this has happened since our records began nearly 50 years ago. Despite the latest GDP figures showing slight growth in October, the warning is of a tough road ahead and that the UK is not out of the recessionary woods. Real wages are falling as inflation continues to bite hard, further straining the discretionary budget of many households as we enter the last few shopping days before Christmas.

“The outlook for our personal financial situation over the next 12 months – perhaps the key metric as we enter a new year – is stuck at -29. And concerns about our economic future remain acute. As we enter the festive season, the Overall Index Score is still depressed and, with scant seasonal joy at present and no immediate prospect of fiscal good news, it is unlikely we will see a rebound in confidence anytime soon.”