The latest consumer confidence report from GfK didn’t share the gloom of the one a day earlier from the British Retail Consortium (BRC), but it did reflect its note of caution for the year ahead.
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GfK’s long-running Consumer Confidence Index in fact showed confidence is up two points (to -17) in December and all five of its measures edged up this month. But confidence still “remains subdued after a year of no progress”, it noted.
So how did those five measures, come out this time? The personal finances index over the last 12 months increased by one point to -6 month on month; the forecast for personal finances over the next year rose one point to 2; the measure for the country’s general economic situation over the last 12 months increased three points to -40; expectations for the general economic situation over the next 12 months lifted three points to -29; the Major Purchase Index jumped four points to -11; and finally, the Savings Index was unchanged at 24.
Neil Bellamy, Consumer Insights director at GfK, said: “It’s tempting to see festive cheer in December’s two-point improvement in consumer confidence. Are we seeing a sigh of relief that the Autumn Budget wasn’t as bad as most had feared?
“All five measures are up this month led by a four-point jump in major purchase intentions. This is a surprise finding for the UK high street because it contrasts with the Black Friday sales slump we reported on earlier this month. Have people decided to spend on Christmas regardless, and worry about 2026 later?
Bellamy added: “However, looking at the full year, the December headline score of -17 is the same as 12 months ago, and on that basis 2025 has been a year of no progress. 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.”
