Consumer confidence climbs as major purchases improves

UK consumer confidence has increased this month as the UK’s Covid-19 vaccination programme delivers uplifting mood.

According to GfK’s long-running Consumer Confidence Index, it increased by seven points to -26. The major purchase index rose by six points to -22.

The index measuring the forecast for people’s personal finances over the next 12 months rose by eight points to 3 while the measure for expectations for the general economic situation over the same period climbed by 15 points to -35.

Joe Staton, GfK’s client strategy director, said: “Many might be surprised that we are ending 2020 on a much brighter note after a roller-coaster of a year. It’s safe to say that consumers are looking for good news and they have found it in the form of the UK’s Covid-19 vaccination programme getting underway, which has lifted the mood pre-Christmas 2020.

“The 15-point leap in consumer views on the future economy stands out and we have not registered a change of that magnitude for that measure since April/May 2011. The renewed expectations on personal finances looking ahead are also welcome, while the six-point uptick in the major purchase Index is good news for online and offline retailers. While confidence is still in negative figures, are we finally heading in the right direction?”