UK Consumer Confidence Improves in December

The UK GfK Consumer Confidence Index edged up to -16 in January 2026 from -17 in December, pointing to household resilience rather than renewed optimism, as the broader economic outlook remains subdued. The latest reading also marked 10 years since the index last stood in positive territory. Confidence in personal finances over the next 12 months rose four points to +6, eight points higher than a year earlier. By contrast, expectations for the general economic situation over the coming year slipped two points to -31, though this remains three points above last January’s level. The Major Purchase Index, which gauges sentiment toward big ticket spending, improved by one point to -10, standing 10 points higher than a year ago. Commenting on the data, GfK Consumer Insights Director Neil Bellamy noted that despite the one point improvement in headline confidence, consumers remain far from feeling that an economic turnaround is imminent.

The GfK Consumer Confidence Index for the UK rose to -17 in December 2025 from -19 in November, beating forecasts of -18 and signaling a modest improvement in sentiment ahead of the Christmas period. Despite the uptick, confidence remains subdued amid persistent cost-of-living pressures and broader economic uncertainty. All five components of the survey improved during the month, rebounding from a November downturn that had been weighed down by pre-budget uncertainty. The major purchase index, which gauges willingness to buy big-ticket items, climbed four points to -11, suggesting stronger holiday sales momentum compared with Black Friday last month. However, GfK Consumer Insights Director Neil Bellamy cautioned that “UK households continue to face cost-of-living pressures despite the recent easing in inflation, alongside rising economic uncertainty, and these conditions are likely to restrain consumer confidence.”

The GfK Consumer Confidence Index for the UK fell to -19 in November 2025 from -17 in October, coming in below expectations of -18 as households braced for finance minister Rachel Reeves’ budget next week. Reeves is expected to raise 20 to 30 billion pounds in taxes amid a likely growth downgrade, higher borrowing costs and rising welfare expenses. Neil Bellamy, consumer insights director at GfK, said the latest reading was “a bleak set of results as we head towards next week’s Budget,” noting that declines across all five components suggest the public is preparing for difficult news. Forward looking measures for confidence in personal finances and the broader economy each slipped by 2 points to 1 and -32, respectively. The major purchase index, which tracks willingness to buy big ticket items, also dropped by 3 points to-15.