Consumer confidence rises but remains near record low

GfK said consumer confidence was at -42, the eighth month in a row that scores were at -40 or lower, which was the record longest run at these scores in the almost 50-year history of the index.

Personal finances over the past year were rated at -28, a four-point fall from November, while the personal financial outlook for 2023 stayed at -29.

However, there was greater optimism about the general economic situation over the past 12 months, up one point, albeit to -66, and there was a five-point increase to -53 in confidence in the economic situation for the next year.

The major purchase index, which measures whether now is a good time to make a major purchase, rose four points to -34, and the savings index increased one point to an overall score of 20, the only measure that was in positive territory.

The index is based on a survey of a nationally-representative sample of 2,000 individuals, with interviewing carried out between 30th November and 9th December.

Joe Staton, client strategy director at GfK, said: “Real wages are falling as inflation continues to bite hard, further straining the discretionary budget of many households as we enter the last few shopping days before Christmas.

“The outlook for our personal financial situation over the next 12 months – perhaps the key metric as we enter a new year – is stuck at -29. And concerns about our economic future remain acute.

“As we enter the festive season, the overall index score is still depressed and, with scant seasonal joy at present and no immediate prospect of fiscal good news, it is unlikely we will see a rebound in confidence anytime soon.”