UK consumer confidence increased two points in December despite ongoing cost-of-living concerns, 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 two points to -22 in December 2023. 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 one point to -23; this is 11 points higher than this month last year.

The measure for the general economic situation of the country during the last 12 months is up five points at -44; this is 22 points higher than in December 2022. 

The index measuring changes in personal finances during the last year is up two points at -14; this is 14 points better than December 2022.

The Savings Index is up two points at +27; this is seven points higher than this time last year.

Joe Staton, Client Strategy Director, GfK, says: “Against the backdrop of flatlining economic growth, interest rates at a 15-year high, and price rises potentially eroding disposable income for years to come, the Consumer Confidence Index shows a modest improvement this month with gains across all key measures.

“Although the headline figure of -22 means the nation’s confidence is still firmly in negative territory, optimism for our personal finances for the next 12 months shows a notable recovery from the depressed -29 reported this time last year. Recovery in this number is important as it best reflects household financial optimism and control over personal budgets.

“Despite the severe cost-of-living crisis still impacting most households, this slow but persistent movement towards positive territory for the personal finance measure looking ahead is an encouraging sign for the year to come.”