GfK’s UK Consumer Confidence Index has increased six points this month to -7. All five measures used to calculate the Index score have seen increases this month.
Nick Moon, Managing Director of Social Research at GfK, comments:
After three consecutive 1 point falls in the Index, January saw a dramatic return to the rapid improvement seen last summer, with a 6 point rise. This more than cancels out the recent falls and means that in the nine months since last April the Index has risen by a massive 20 points. This is only the third time in the 40 years of the Index that there has been such a nine-month shift.
Now standing at -7 the Index is higher than it has been since September 2007. All five of the individual elements that make up the Index saw substantial gains this month.
All this is good news for the Government as the election starts to get within sight. Growing confidence should manifest itself in greater spending, but the somewhat anaemic retail sales figures for December suggest that the huge growth in the confidence index over the summer didn’t lead to a similar growth in spending. It will be interesting to see, over the coming months, how the relationship develops between confidence, disposable income, and consumer spending”.
SEE NICK MOON TALKING ABOUT THIS MONTH’S CCB HERE: www.youtube.com/watch
Personal Financial Situation
The index measuring changes in personal finances during the last 12 months has increased four points this month to -12; this is twelve points higher than January 2013.
The forecast for personal finances over the next 12 months has increased six points this month to 3; this is ten points higher than this time last year.
General Economic Situation
The measure for the General Economic Situation of the country during the last 12 months has increased six points this month to -20; this is thirty one points higher than January 2013.
Expectations for the General Economic Situation over the next 12 months have increased six points this month to 2; this is twenty seven points higher than this time last year.
Major Purchase Index
The ‘climate for major purchases’ Index has increased seven points this month to -10; this is twelve points higher than this time last year.
The ‘now is a good time to save’ Index has increased four points this month to -9, which is seven points higher than January 2013.