UK Consumer Confidence at Highest Ebb in Two Years

Confidence
in
personal
finance
gained
two
points
and
now
stands
at
zero,
ending
24
consecutive
months
of
negative
scores
and
“the
best
single
indicator
for
how
the
nation’s
households
feel
about
their
income
and
expenditure”,
GfK
said.

Expectations
for
the
general
economic
situation
over
the
next
year
have
increased
by
four
points
to
-21.
That’s
33
points
higher
than
last
January.

Meanwhile,
the
major
purchase
index,
a
measure
of
confidence
in
buying
big-ticket
items,
is
up
three
points
to
-20.
That’s
20
points
higher
than
a
year
ago.

Joe
Staton,
client
strategy
director
at
GfK,
says:
“consumer
confidence
has
started
the
year
well
with
all
measures
up
and
a
headline
score
of
minus
19,
the
best
since
January
2022.

“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.”

Linda
Ellett,
UK
head
of
consumer,
retail
and
leisure
markets
for
KPMG,
adds:
“while
inflation
and
interest
rates
are
gradually
reducing,
prices
are
still
increasing
and
consumers
are
seeing
costs
still
going
up.

“Many
people
still
face
the
prospect
of
large
jumps
in
their
mortgage
when
their
fixed
deal
ends
this
year.
And
even
more
face
higher
costs
for
the
likes
of
insurance
premium
renewals,
or
in-contract
increases
for
mobile
and
broadband
provision.

“Household
spending
power
is
still
gradually
being
eroded
and
in
this
environment
it
is
little
surprise
to
see
that
there
is
limited
appetite
for
spending
dwindling
savings
on
major
purchases,
except
perhaps
–
for
those
who
can
afford
to
–
to
temporarily
take
a
break
from
it
all
on
holiday.

“In
KPMG
research,
households
feeling
worse
about
their
financial
security
outnumber
those
feeling
more
secure
by
almost
two
to
one.”

By
Josie
Clarke,
PA
Consumer
Affairs
Correspondent

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