Consumer confidence buoyed by post-election bounce

Although consumer confidence remained in negative territory at -11 in December, that marked a three-point improvement from November’s score of -14, according to the latest data from GfK.

Sentiment surrounding the UK’s general economic situation over the next 12 months improved seven points month-on-month to -27. That also marked an 11-point increase year-on-year.

Consumers also felt more buoyant about their personal finances in 2020. That measure improved two points month-on-month – and four points compared to December 2018 – to 3.

In an added fillip to big-ticket retailers, the major purchase index has jumped three points since November to 3, suggesting that customers may be more willing to spend on more expensive items during the crucial final weekend before Christmas.

GfK client strategy director Joe Staton said: “There’s a clear sense of a change in consumer sentiment this month. The picture for the year to come is much stronger with a two-point improvement in how consumers view their personal financial prospects and a very healthy seven-point jump on how they see the wider economy next year. We haven’t seen such a robust increase in confidence about our economic future since the summer of 2016.

“Despite official warning signs about the flatlining of Britain’s economy, we know that record-high employment and below target levels of inflation are helping to boost consumers’ expectations for the year ahead.

Staton added: A great many people will be gazing into their crystal balls right now; ours indicates a rebound in confidence in 2020 based on renewed optimism and energy for a post-Brexit Britain.”