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Consumer confidence increases in January

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  • 26/01/2024
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Consumer confidence increases in January
Brits are more optimistic about the economy for the next 12 months than they have been in two years, according to the GfK Consumer Confidence Index.

According to the index, consumer confidence went up three points to -19 in January. All five measures in the index were up in comparison to last month’s announcement.

The five measures in the index

The UK Consumer Confidence Barometer is conducted by GfK. Each month since January 1974, it has provided a snapshot of how UK consumers feel about the crucial economic topics today and their outlook for the next 12 months, by looking at five different measures. 

The index measuring changes in personal finances during the past year is up two points at -12; this is 19 points better than January 2023. The forecast for personal finances over the next 12 months increased two points to the value of 0, which is 27 points higher than this time last year.

The measure for the general economic situation of the country during the past 12 months is up three points at -41; this is 30 points higher than in January 2023. 

Expectations for the general economic situation over the next 12 months have increased by four points to -21; this is 33 points better than January 2023.

The Major Purchase Index is up three points to -20; this is 20 points higher than this month last year.

The Savings Index has stayed the same at +27 in January; this is 13 points higher than this time last year.

Consumers encouraged by falling inflation

Joe Staton, client strategy director at GfK, said: “Importantly, the view on our personal financial situation for the coming year has gained two points and now stands at zero. 

“This is exciting as it ends 24 consecutive months of negative scores for this measure and this significant change is the best single indicator for how the nation’s households feel about their income and expenditure. Despite the cost-of-living crisis still impacting many households across the UK, consumers appear to be encouraged by the positive news about falling inflation

“On balance, while there is national and global turmoil, the Consumer Confidence Index has started 2024 on a positive note – let’s see if this optimism continues.”

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