// Consumer confidence edges up 2 points to -42 in December
// However, it remains the eighth consecutive month that confidence levels are below -40
Consumer confidence improved marginally in December according to GfK’s tracker but retailers are warned they face a tough road ahead.
Despite confidence levels edging up 2 points to -42 in December, it remained at historically low levels.
GfK client strategy director Joe Staton said: “December marks the eighth month in a row in which the index has bumped along at -40 or worse, the first time this has happened since our records began nearly 50 years ago.
“Despite the latest GDP figures showing slight growth in October, the warning is of a tough road ahead and that the UK is not out of the recessionary woods.”
“Real wages are falling as inflation continues to bite hard, further straining the discretionary budget of many households as we enter the last few shopping days before Christmas.
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“As we enter the festive season, the overall index score is still depressed and, with scant seasonal joy at present and no immediate prospect of fiscal good news, it is unlikely we will see a rebound in confidence any time soon.”
Consumers’ outlook for their own personal financial situation over the next 12 month, what Stanton said was the “key metric as we enter a new year”, remained flat at -29, while confidence in the general economic over the next year rose five points to -53.
The major purchase index jumped four points to -34. However, consumers’ view of their personal financial situation over the past 12 months fell four points, down to -28, and their view of the general economic situation over the last year edged up one point to -66.
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