Consumer confidence edges up

Three of its five measures saw increases in this month: consumers feel positive about their personal financial position in the coming year; the felt positive about it over the past 12 months; and they felt positive about the general economic situation over the past 12 months.

They remained neutral about the general economic outlook over the coming year and were negative (-2 ) on the time being right for making major purchase decisions.

Joe Staton, head of market dynamics at GfK, warned that this latter score could be a “foretaste of slowing consumer spending throughout 2017”.

He said: “Regardless of pre-trigger Brexit jitters, Blue Monday, and a wobbly pound forecast to push up prices, UK consumer confidence remained stable flat lining at -7 this month. Consumers report they are feeling upbeat about their personal financial situation for the coming year (four-point increase to +7 ). However, stubborn concerns about the wider economy are ensuring the Overall Index Score remains stuck in negative territory.

“Rising inflation and weak income growth is forecast to squeeze households’ disposable income, and these two factors could conspire to depress confidence for the year ahead. It’s certainly difficult to see where the oomph will come from over the short term.”