UK consumer confidence continues to improve in Jan - GfK

UK consumer confidence continued to improve in January to its best level in two years, according to a long-running survey published on Friday.

The GfK’s consumer confidence index increased three points to -19 in January, with shoppers more optimistic about their personal finance situation.

"Consumer confidence has started the year well with all measures up...the best since January 2022. Importantly, the view on our personal financial situation for the coming year has gained two points and now stands at zero," said Joe Staton, client strategy director at GfK.

"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."

Staton added that despite the cost-of-living crisis still hitting many households across the UK, consumers appeared to be encouraged by the positive news about falling inflation, currently at 4%.

Among GfK's key measures, the personal finances index for the last year was up two points at -12, 19 points better than January 2023, while the index for the general economic situation rose three points to -41; 30 points higher year on year.

The gauge for expectations for the general economic situation over the next 12 months increased by four points to -21; a 33 point improvement on the year.

Reporting by Frank Prenesti for Sharecast.com