Despite a slight increase in November, consumer confidence in the UK remains low. The latest Consumer Confidence Index by GfK shows a small improvement, but experts are cautious about its significance, suggesting that the rise may be attributed to the relief of a new prime minister taking charge. While the Overall Index Score increased by three points in November, it still stands at a weak -44.
The index assessing changes in personal finances over the last 12 months also saw a slight increase, but it remains worse than the previous year. Similarly, expectations for personal finances over the next 12 months improved, but they are still significantly lower compared to last year. The measure for the general economic situation of the country showed some improvement, but it remains lower than last year as well.
The Major Purchase Index did experience a small increase, albeit noticeably lower than the previous year. However, the Savings Index saw a significant increase in comparison to last year. Despite these slight improvements, experts warn that more bad news is expected due to external factors and the high inflation rate in the UK.
Unfortunately, consumers are currently facing austerity and a general sense of pessimism, which is far from ideal during the festive season. They are hoping for more certainty and optimism, but it remains scarce. The ongoing cost-of-living crisis further aggravates the situation, leaving many struggling to make ends meet.
Overall, consumer confidence in the UK lingers at low levels, with the small improvements overshadowed by prevailing challenges. It is crucial for the government and policymakers to address these issues and work towards fostering an environment of stability and growth.
Useful links:
1. GfK: UK Consumer Confidence Report
2. Financial Times: Consumer Confidence in the UK Remains Low
