UK consumer confidence increased three points in January as all five measures were up in comparison to last month’s announcement.

According to the latest GfK Consumer Confidence Index, overall figures saw an increase by three points to -19 in January 2024. As for the year as a whole, there was a 20-point year-on-year rise in consumer confidence.

The Major Purchase Index, which includes big ticket items such as furniture, is up three points to -20; this is 20 points higher than this month last year.

The measure for the general economic situation of the country during the last 12 months is up three points at -41; this is 30 points higher than in January 2023. 

The index measuring changes in personal finances during the last year is up two points at -12; this is 19 points better than January 2023.

The Savings Index has stayed the same at +27 in January; this is 13 points higher than this time last year.

Joe Staton, Client Strategy Director, GfK, says: “Consumer confidence has started the year well with all measures up and a headline score of -19, the best since January 2022. Importantly, the view on our personal financial situation for the coming year has gained two points and now stands at zero.

“This is exciting as it ends 24 consecutive months of negative scores for this measure and this significant change is the best single indicator for how the nation’s households feel about their income and expenditure.

“Despite the cost-of-living crisis still impacting many households across the UK, consumers appear to be encouraged by the positive news about falling inflation. On balance, while there is national and global turmoil, the Consumer Confidence Index has started 2024 on a positive note – let’s see if this optimism continues.”