UK Consumer confidence still at record lows

Despite this, December marked the eighth month in a row in which the index was at -40 or worse – the first time this has happened since the market researcher’s records began nearly 50 years ago.  

Overall, three measures were up, one was down, and one was unchanged when compared to the figures reported in November. Changes in personal finances over the last 12 months decreased by four points to -28 – 23 points worse than December 2021 – while the forecast for personal finances over the next 12 months remained at -29. 

As for the measure looking at the general economic situation of the country during the last 12 months, this was up one point at -66, although this is 27 points lower than in December, while expectations the economic situation in the next 12 months improved by five points to -53, but is still 29 points lower than December 2021.  

The major purchase index, meanwhile, went up four points to -34 – 28 points lower than this month last year – with the savings index down one point to +20, but is six points better than during December 2021.  

Commenting on these figures, GfK’s client strategy director Joe Staton said: “December marks the eighth month in a row in which the Index has bumped along at -40 or worse, the first time this has happened since our records began nearly 50 years ago.  

“Despite the latest GDP figures showing slight growth in October, the warning is of a tough road ahead and that the UK is not out of the recessionary woods. Real wages are falling as inflation continues to bite hard, further straining the discretionary budget of many households as we enter the last few shopping days before Christmas.  

“The outlook for our personal financial situation over the next 12 months – perhaps the key metric as we enter a new year – is stuck at -29. And concerns about our economic future remain acute.  

“As we enter the festive season, the Overall Index Score is still depressed and, with scant seasonal joy at present and no immediate prospect of fiscal good news, it is unlikely we will see a rebound in confidence anytime soon.”