Consumer confidence improves but remains subdued ahead of Christmas

Consumer confidence edged up ahead of Christmas but remains subdued in the face of cost-of-living pressures, according to new figures.

GfK’s long-running Consumer Confidence Index improved by two points to minus 17 for December.

The research showed that all five of the survey’s measures increased for the month, bouncing back from a weak November which had been impacted by pre-Budget caution.

Neil Bellamy, consumer insights director at GfK, said: “It’s tempting to see festive cheer in December’s two-point improvement in consumer confidence.

Industry data pointed to weakness on the high street earlier in the run-up to Christmas, the data from the CBI showing the sharpest fall in sentiment among retailers for 17 years.

The GfK figures showed a four-point improvement in its major purchase index – an indicator of confidence in buying big ticket items – to minus 11.

Measures related to shoppers’ views about the wider economic outlook also improved slightly for the month.

Mr Bellamy said: “UK households still face cost-of-living pressures, despite the recent softening in inflation, along with rising economic uncertainty, and those conditions result in weaker consumer confidence.

“Sadly, consumers resemble a family on a festive winter hike, crossing a boggy field – plodding along stoically, getting stuck in the mud and hoping that easier conditions are not far off.”