Consumer confidence still at near historic low despite November uptick
UK consumer confidence remains at a near historic low despite it ticking up in November.
GfK’s long-running Consumer Confidence index has increased by three points to -44 in the month, with all measures rising compared to October.
Joe Staton, client strategy director at GfK, said: “Despite the three-point rise in confidence to -44 this month, and improvements in all measures registering the financial and economic mood of the nation, November’s overall index score remains at a near historic low. This month’s fillip is likely to reflect nothing more than a collective sigh of relief as a new prime minister takes charge following the alarming fiscal antics we saw in September.”
GfK’s measure for the forecast for personal finances over the next 12 months has increased by five points to -29 this month, but this is 31 points lower than the same time last year.
Meanwhile, the measure for expectations for the general economic situation over the same period has improved by three points to -58, although this is 35 points lower than November 2021.
Looking a GfK’s major purchase index, this has risen by three points to -38 which is 35 points down on the same month last year.
Staton said: “This is not the end of the beginning. External factors have changed little and, with UK inflation recently hitting a new high, more bad news is inevitable. Household budgets remain shrouded in massive uncertainty with fresh jumps in food prices, energy still uncomfortably expensive, the prospect of new interest rate rises pressurising mortgage and rent payments, potential future hikes in council tax and squeezed real pay.
“Consumers are looking for a festive cocktail of certainty and optimism not this mishmash of austerity and pessimism. Good news remains in short supply as many people struggle to manage the purse-strings during this protracted and painful cost-of-living crisis.”
