UK Consumer Confidence stages end-of-year rally

UK consumer confidence bounced back six points in November 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 six points to -24 in November 2023.

The Major Purchase Index, which includes big ticket items such as furniture, is up 10 points to -24; this is 14 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 -49; this is 18 points higher than in November 2022. 

The index measuring changes in personal finances during the last year is up three points at -16; this is eight points better than November 2022.

The Savings Index is up four points at +29; this is eight points higher than this time last year.

Joe Staton, Client Strategy Director, GfK, says: “Consumer confidence strengthened in November with improvements across all measures. Recent ups and downs in confidence have underlined the nation’s topsy-turvy economic mood as encouraging news about falling inflation and wage growth is offset by high personal taxation, alongside costly fuel and energy bills.

“Although the Overall Index Score is still tracking firmly in negative territory, it is good to see that consumers are more optimistic about their personal financial situation. This shows people are thinking about their future with increased confidence and willingness to look beyond the short-term.

“The dramatic 10-point jump in our major purchase sub-measure, reversing some of the worrying 14-point drop we saw last month, will be good news for retailers looking to benefit from Black Friday and Christmas. Despite the acute cost-of-living pressures, many would still like to loosen their purse strings just a little so they can enjoy that feel-good factor we all associate with the festive season.”

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