Consumer confidence remained subdued in December amid “continued optimistic expectations about the UK’s general economic situation”, the survey suggests.
GfK’s long-term consumer confidence index increased by one point to minus 17 in December as forecasts for personal finances moved into positive figures one to three points higher than this time last year.
However, expectations for the general economy over the next 12 months remained unchanged at minus 26 – one point worse than last December – suggesting “people do not know where we are going”, said GfK.
The major purchase index, an index of confidence in buying big-ticket items, also remained unchanged at minus 16, although this is seven points higher than a year ago.
Neil Bellamy, director of insights at GfK, said: “Consumer confidence is still far from strong but there is some room for hope with views on personal finances over the next 12 months up two points towards November and creeping into positive territory.
“However, with the major purchase measure unchanged at 16 in December, consumers are still thinking twice about big-ticket purchases and whether to celebrate Christmas.
“We will need to see robust growth in these perceptions of the economy before we start talking about sustainable improvements in the consumer’s mind.
“In a nutshell, the continued unexplainable sentiment in the UK’s general economic situation is undermining consumer confidence.”
Bellamy added: “All in all, 2024 was another year of ups and downs in confidence, but much less compared to recent years.
“In 2024, the difference between the highest and lowest score was eight points. In 2023, the difference was 23 points, and in 2022 it was 30 points. So volatility is down, but will it stay that way?”