Consumer confidence jitters ease after ‘Boris bounce’

The consumer confidence index increased by two points to -9 during January, according to the latest data from GfK.

The index measuring consumers’ personal financial situation during the last 12 months increased by four points in January to +1. This was one point higher compared to January 2019.

The measure for the general economic situation in the UK over the last 12 months increased three points this month to -2 – seven points higher than in January 2019.

The major purchase index fell by two points to +1 during January – one point lower than the same month the previous year.

However, the savings index increased two points to +20 during the same period – six points higher than January last year.

GfK client strategy director Joe Staton said: “The first month of 2020 has given us a mini ‘Boris bounce’ with a two-point increase in our consumer confidence headline score. While January marks four years of the Index failing to penetrate positive territory, we now have two consecutive months of improvement. This is good news.

“The latest measures concerning our personal financial situation for the last and next 12 months are encouragingly healthy and positive, as is the improvement in our view of the wider economic picture for the UK. This is linked to the uptick in the jobs and housing markets, coupled with low headline inflation and interest rates.

“The major purchase index is the only measure to decline this month, reflecting January’s seasonal post-Christmas empty-wallet feeling, and further impacting the longer-term contraction and sluggishness experienced across the retail sector. However, if current trends continue, we’d expect a return to positive headline scores soon. Are we are finally seeing an end to the UK’s jittery consumer mood?”