In December, UK consumer confidence experienced a noteworthy surge, with GfK’s consumer confidence index showing a significant increase of seven points. This positive development can largely be attributed to the promising news surrounding Covid-19 vaccines, instilling a sense of optimism and hope for a brighter future among consumers.
Of the five key measures analyzed by the index, expectations regarding the general economic situation in the next 12 months witnessed the most substantial growth, with a remarkable jump of 15 points. Despite this improvement, it is still trailing behind December 2019 by eight points. Additionally, the Major Purchase Index also saw a notable increase of six points, although it remains 25 points below last year’s figures.
Joe Staton, GfK’s Client Strategy director, emphasized that the level of change observed in some of these measures has not been seen since 2011. The positive shift in expectations surrounding personal finances and the uptick in the Major Purchase Index are encouraging signs for both online and offline retailers alike.
Looking ahead, the forecast for personal finances over the next year showed improvement, climbing by eight points to +3. This improvement is reminiscent of the sentiment observed in December 2019, prior to the onset of the global pandemic. While the index tracking changes in personal finances over the past year also saw a seven-point increase, it remains below last year’s levels.
Despite the progress seen in certain areas, the measure assessing the general economic situation of the country in the past year only experienced a modest two-point increase, remaining significantly lower compared to the previous year. On a positive note, the Savings Index saw a noteworthy increase of six points in December, indicating a growing sense of optimism among consumers regarding their financial stability.
Overall, the rise in consumer confidence bodes well for UK retailers who have navigated challenges throughout the year. As the distribution of Covid-19 vaccines continues, consumers are increasingly hopeful about what lies ahead, as evidenced by the latest data from GfK’s consumer confidence index.
To learn more about consumer confidence trends in the UK, check out the GfK website and explore additional insights on economic indicators at the Office for National Statistics (ONS).
