Consumer confidence remains ‘far from strong’ ahead of Christmas  

It’s been a negative year for consumer confidence. However, confidence grew for the second month running, rising by one point to –17, according to GfK’s Consumer Confidence Index. 

This means consumer confidence has increased by just two points since the beginning of 2024, with January’s figure coming in at –19.  

“Consumer confidence is still far from strong but there is some room for optimism,” says Neil Bellamy, consumer insights director at GfK.   

Comparatively, consumers’ confidence in their personal finances during the last year grew by two points in the last month, up to –7. This is a seven-point increase on December 2023. Confidence in the forecast for personal finances in the next 12 months is on the up, with confidence now sitting at 1, compared with –2 this time last year.  

Consumer confidence rises following period of ‘nervousness’

Nothing changed this month in people’s perceptions of the general economic situation. For the second month running, the figure is –39. While in the negative, this is five points higher than last December.  

Expectations for the general economic situation to improve in the next 12 months have also stayed the same at –26 – a one-point decline year-on-year. The Major Purchase Index hasn’t changed either this month, at –16. This is seven points higher than this month last year.  

The Savings Index – a measure of confidence in savings – dropped three points to 21, six points lower than this time last year but still in the positive.  

“It’s been a flat year for consumer confidence in 2024. The headline score in January was -19 and the results for December have come in at -17. Consumers were more than a little apprehensive just after the new government came into power, but we’ve made up all of the lost ground and are back to where we were in the spring,” Bellamy tells Marketing Week.  

Bellamy points to Black Friday week, which hit £992m and was 110% better than the average week in 2024, as a sign of positivity.  

“The past year has been noticeably less volatile than 2023 or 2022 and marketers can take some comfort from that. The new UK government is nearly six months into the job and is planning to boost the UK economy. But plans of that kind take time to deliver and until then it’s likely that marketers will need to tap their skillsets to navigate another flat year,” he adds.