Consumer confidence rose in January across all metrics, although it is not clear whether this is “a temporary blip rather than a strong sign of recovery”.
UK consumer confidence rose by four points this month across all five measures to -9 overall, ending a run of four consecutive months of decline and in stark contrast to last month, which was the lowest-scoring December in four years.
According to the GfK Consumer Confidence Index, shoppers’ inclination to make big-ticket purchases registered the biggest jump, up five points to +1.
Outlook on the general economy over the next year and consumers’ personal finances both rose four points to -24 and +6 respectively.
Shopper confidence in the general economy and their personal finances over the past 12 months both recorded two-point rises, to -29 and -1 respectively.
However, GfK’s head of market dynamics Joe Staton was not convinced that consumer confidence had turned a corner just yet.
“Having survived Christmas, New Year, the January Sales and Blue Monday, bullish Brits report a more upbeat view of their financial prospects for 2018 this month,” he said.
“However, standing at -9, the Index is still lower than this time last year (-5), and still in negative territory, and in the absence of good news about rising wages and declining inflationary pressures, this off-trend number could be a temporary blip rather than a strong sign of recovery.
“With 2018 still in its infancy, and with a great deal of uncertainty in store, there could be more turbulence in the consumer mood this year and next.”
Shoppers’ inclination to save increased six points to +10, a 12-point hike year on year.