Consumer confidence has risen for the second consecutive month this December, according to GfK, suggesting households may be more inclined to spend over the festive season.
The market research company‘s consumer confidence index was up by two points to -22, making it an improvement on the -29 the same time last year.
Meanwhile, expectations for the general economic situation over the next year rose by one point to -25, making it 28 points up from December 2022.
Confidence in personal finances improved from -29 a year ago to -2, while the major purchase index nudged up one point to -23.
Likewise, confidence in individuals’ personal financial situation during the past year improved by 14 points from last year, reaching -14.
The savings index, derived from asking participants whether they think it is a good or bad time to save, hit 27, making it seven points higher than the same time 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:
“Against the backdrop of flatlining economic growth, interest rates at a 15-year high and price rises potentially eroding disposable income for years to come, the consumer confidence index shows a modest improvement this month with gains across all key measures.
“Although the headline figure of minus 22 means the nation’s confidence is still firmly in negative territory, optimism for our personal finances for the next 12 months shows a notable recovery from the depressed minus 29 reported this time last year.”
He continued: “Despite the severe cost of living crisis still impacting most households, this slow but persistent movement towards positive territory for the personal finance measure looking ahead is an encouraging sign for the year to come.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
