UK consumer confidence grows despite soaring inflation

The index increased three points to -14 in November, with four measures up in comparison to the previous announcement. The index measuring changes in personal finances over the last 12 months has dropped two points to -7, nine points better than November 2020. The forecast for personal finances over the next 12 months has increased one point to +2, seven points higher than this time last year.

The measure for the general economic situation of the country during the last 12 months is six points better at -40; this is 27 points higher than in November 2020. Expectations for the general economic situation over the coming 12 months have improved by three points to -23, some 27 points higher than November 2020.

The findings are based on a survey of 2,000 adults acrried out online between 1st and 12th November.

The major purchase index has increased by seven points to -3; this is 25 points higher than it was in the same month last year. Lastly, the savings index has weakened by seven points to +15 in November, four points higher than this time last year.

Joe Staton, client strategy director at GfK, said: “Headline consumer sentiment has ticked upwards this month despite decade-high inflation, fears of higher prices and worries over rising interest rates... [plus], the deepening cost-of-living squeeze leaves UK household finances worse off this winter.

“The view on the general economic situation over the past year and the year to come is better this month, but consumers are less buoyant on their personal finances. This weakness is important as it reflects day-to-day plans to save or spend and is a strong driver of overall UK economic growth. However, one highlight for both physical and virtual retail is the seven-point jump in major purchase intentions in the run-up to Black Friday and Christmas.”