‘Resilient’ households behind slight rise in consumer confidence

Consumer confidence rose slightly in January, driven by household “resilience” rather than optimism about the economy, figures show.

GfK’s long-running Consumer Confidence Index increased by one point to minus 16, marking 10 years since the barometer was last in positive territory.

Confidence in personal finances over the next year rose four points to six, which is eight points higher than this time last year.

However, expectations for the general economic situation over the coming 12 months fell two points to minus 31, although this is three points higher than last January.

The Major Purchase Index – a measure of confidence in buying big-ticket items – rose one point to minus 10, 10 points higher than last year.

GfK consumer insights director Neil Bellamy said: “January 2026 brings an unwanted anniversary, marking 10 years since consumer confidence was last in positive territory.

“Even with a one-point increase in headline confidence this month to minus 16, we remain a long way from consumers feeling that better days are around the corner.

“Yes, perceptions of personal finances have improved, but this is offset by growing concerns about the economy.

“We’ve seen this pattern before. During periods of political and economic uncertainty – most notably in late 2022 – consumers became more cautious but also more self-reliant.

“What we’re witnessing now is a return to that mindset: people feel they can manage their own finances, but they remain unconvinced about the wider economic outlook.

“Let’s be clear, this isn’t optimism; it’s resilience.

“Consumers are once again focusing on what they can control – their own spending and saving – while confidence in the wider economy remains low.

“To many consumers, the UK economy is beginning to resemble an untethered boat drifting slowly out to sea.”