// Consumer confidence shows little signs of improvement as it drops to near-historic lows
// GfK’s UK consumer confidence index fell 2 points in January to -45, only four points away to the historic low of -49 recorded in September 2022
Consumer confidence shows no signs of improvement as it dropped to a near-historic lows, with shoppers experiencing a “New Year hangover of the economic kind”.
GfK’s UK consumer confidence index slipped two points in January to -45, only four points away from the historic low of -49 in September last year.
However, confidence in personal finances over the next 12 months, which is seen as a key indicator for spending, shows a “glimmer of hope” as it edged up two points to -27, but is still 25 points lower than of January last year.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
GfK client strategy director Joe Staton said: “Consumers have a New Year hangover – but it’s of the economic kind – with high levels of pessimism over the state of the wider economy.
“And unlike a conventional hangover, this one won’t vanish quickly.”
The major purchase index fell six points to -40 against last month’s -34 and last year’s -10.
Meanwhile, the general economic situation for the year ahead fell one point to -54.
Staton said with inflation continuing to swallow up pay rises and increasing energy bills, consumer confidence in the year ahead is not looking good.
“One thing we can be sure of is that 2023 promises to be a bumpy ride,” he added.
Click here to sign up to Retail Gazette‘s free daily email newsletter
