Steep drop in consumer confidence amid concerns of ‘dark days ahead’

By Staff reporter
Published 24th Jan 2025, 00:01 GMT
Updated 24th Jan 2025, 00:25 GMT
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Consumer confidence has suffered a steep drop amid signs that households see “dark days ahead” for the economy, according to a long-running survey.

GfK’s Consumer Confidence Index fell by five points to minus 22 in January, with all measures that make up the overall score down on last month.

The index shows particularly steep falls in consumer views on the wider UK economy, both looking back a year – down seven points to minus 46, and five points lower than last January – and for what is in store for the next 12 months – dropping eight points to minus 34 and 13 points down on a year ago.placeholder image
The index shows particularly steep falls in consumer views on the wider UK economy, both looking back a year – down seven points to minus 46, and five points lower than last January – and for what is in store for the next 12 months – dropping eight points to minus 34 and 13 points down on a year ago.

The forecast for personal finances over the next 12 months fell three points to minus two – two points lower than this time last year.

The major purchase index – a measure of confidence in buying big-ticket items – was down four points to minus 20.

The savings index leapt nine points in January to positive 30 in a sign that increasing numbers of people were considering putting money aside for “safety”, GfK said.placeholder image
The savings index leapt nine points in January to positive 30 in a sign that increasing numbers of people were considering putting money aside for “safety”, GfK said.

Neil Bellamy, consumer insights director at GfK, said: “New year is traditionally a time for change, but looking at these figures, consumers don’t think things are changing for the better.

“These figures underline that consumers are losing confidence in the UK’s economic prospects.

“While the savings index on motivation to save money is not included in the calculation of the overall index score, it’s notable that it has leapt nine points in January to positive 30.

“This sharp increase is unwelcome because it’s another sign that people see dark days ahead and are therefore thinking of putting money aside for safety.”

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