Consumer confidence improves in November
Consumer confidence has improved in November despite people’s ongoing concerns about the cost of living.
GfK’s latest Consumer Confidence index has risen by six points in the month to -24. This compares to a nine-point decline in October.
While the firm’s sub-measure for the forecast for personal finances over the next 12 months has improved by five points to -3, the measure for expectations for the general economic situation for the same period has grown by six points to -26.
Joe Staton, client strategy director GfK, said: “Consumer confidence strengthened in November with improvements across all measures. Recent ups and downs in confidence have underlined the nation’s topsy-turvy economic mood as encouraging news about falling inflation and wage growth is offset by high personal taxation, alongside costly fuel and energy bills.
“Although the overall index score is still tracking firmly in negative territory, it is good to see that consumers are more optimistic about their personal financial situation. This shows people are thinking about their future with increased confidence and willingness to look beyond the short-term.”
Meanwhile, the major purchase index is up 10 points to -24 this month which is 14 points higher than this time last year.
Staton added: “The dramatic 10-point jump in our major purchase sub-measure, reversing some of the worrying 14-point drop we saw last month, will be good news for retailers looking to benefit from Black Friday and Christmas.
“Despite the acute cost-of-living pressures, many would still like to loosen their purse strings just a little so they can enjoy that feel-good factor we all associate with the festive season.”
