UK consumer confidence nudges up in December, says GfK

Confidence among UK consumers rose in December, according to a survey by market research firm GfK.

Its long-running Consumer Confidence Index increased one point to +2 this month, a touch higher than consensus forecasts for a reading of +1.

Joe Staton, head of market dynamics at GfK, said: “Consumer confidence has remained strong for all of 2015 with an average at +3 for the past 12-months. This is the first time since the Consumer Confidence Barometer started in 1974 that the Index has remained positive for an entire calendar year.

“The last time we were able to report a similar long run of strong news was back in 2002, although the year ended on that occasion with an Index score of -4 after 11 consecutive positive monthly totals.”

However, the survey also showed that consumers’ expectations over the next 12 months remained at -6, the lowest level since July 2013. .

“After three consecutive falls, the composite index rose from November’s six month low in December and has returned to the top 20% of readings since its inception in 1974,” said Samuel Tombs, chief UK economist at Pantheon Macroeconomics.

“Sharp falls in petrol prices and the decline in the unemployment rate back to pre-recession levels probably explain why the pick-up in the composite index entirely reflected a rise in consumer confidence about the outlook for their personal finances to its highest level since October 2007.”