UK consumer confidence touches 4-month high in December, GfK survey shows
2024.12.12 19:15
(Reuters) – British consumer morale hit a four-month high in December as households grew cheerier about their finances, a survey showed on Friday, in good news for finance minister Rachel Reeves after other indicators showed a post-budget slide in business sentiment.
The monthly consumer confidence index from market research firm GfK rose to -17 in December from -18 in November, the highest reading since August. A Reuters poll of economists had pointed to an unchanged reading.
GfK’s measures of past and future financial confidence also rose to four-month highs, while the other components – economic confidence and major purchase intentions – were steady.
Overall the readings added to signs that consumers remain relatively confident about the outlook, in contrast to a sharp dip in business confidence after Reeves’ Oct. 30 budget imposed sharp tax increases on employers.
A separate YouGov/Cebr survey published on Wednesday showed consumer confidence ticked higher this month, despite a drop in perceived job security.
Neil Bellamy, consumer insights director at NIQ GfK, said consumers were still uncertain about making big-ticket purchases and highlighted consumers’ relatively weak confidence about the overall economy compared to their own finances.
“We will need to see robust improvements in these perceptions of the economy before we can start talking about sustained improvements in the consumer mood,” Bellamy said.
Most forecasters think Reeves’ budget will temporarily improve Britain’s economic growth rate next year, although recent data – such as retail sales – has disappointed of late. Gross domestic product data for October is due at 0700 GMT.
The GfK survey of 2,015 people was conducted between Nov. 28 and Dec. 9.
