Consumer confidence remains at ‘historic lows’ in December

GfK’s Consumer Confidence Index increased by only two points in December to -42, with confidence still sitting at “historic lows”. This marked the eighth month in a row in which the Index has remained at around -40 or lower, the first time this has happened since the GfK’s records began nearly 50 years ago. Three measures were up, one was down, and one was unchanged since last month’s index. The index measuring changes in personal finances over the last 12 months decreased four points to -28, 23 points worse than December 2021. This forecast for the next 12 months remained at -29, 30 points lower than this time last year. Meanwhile, the measure for the general economic situation of the country during the last 12 months is up one point at -66, 27 points lower than in December 2021. Expectations for the general economic situation over the coming year have improved by five points to -53 however. Nonetheless, this is still 29 points lower than December last year. The Major Purchase Index is up four points to -34, 28 points lower than the prior year, while the Savings Index is down one point this month at +20, marking an improvement of six points against last year. Joe Staton, Client Strategy director, GfK said: “December marks the eighth month in a row in which the Index has bumped along at -40 or worse, the first time this has happened since our records began nearly 50 years ago. Despite the latest GDP figures showing slight growth in October, the warning is of a tough road ahead and that the UK is not out of the recessionary woods. “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.” He added: “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.”