UK consumer confidence increases despite ‘ongoing cost-of-living concerns’

The overall index score for consumer confidence saw an increase of six points to -24 in November, following a nine-point decline in October, according to the latest GfK Consumer Confidence Index.

All five indexes of consumer confidence were up compared with last month as consumers appeared more optimistic about their finances. 

The index measuring consumers’ confidence in their personal financial situation over the past year increased by three points to -16. The forecast for the next 12 months increased by five points to -3.

Consumer confidence in the general economic situation over the past 12 months rose by five points to -49, while confidence for the next 12 months increased by six points to -26.

The Major Purchase Index also increased by 10 points to -24, which is 14 points higher than this month last year.

Joe Staton, client strategy director for GfK, said: “Consumer confidence strengthened in November with improvements across all measures. 

“Recent ups and downs in confidence have underlined the nation’s topsy-turvy economic mood as encouraging news about falling inflation and wage growth is offset by high personal taxation, alongside costly fuel and energy bills. 

“Although the overall index score is still tracking firmly in negative territory, it is good to see that consumers are more optimistic about their personal financial situation. This shows that people are thinking about their future with increased confidence and willingness to look beyond the short-term.

“The dramatic 10-point jump in our major purchase sub-measure, reversing some of the worrying 14-point drop we saw last month, will be good news for retailers looking to benefit from Black Friday and Christmas. 

“Despite the acute cost-of-living pressures, many would still like to loosen their purse strings just a little so they can enjoy that feel-good factor we all associate with the festive season.”