GfK’s long-running Consumer Confidence Index decreased four points to -19 in January. All measures were down in comparison to the December 17th announcement.
Joe Staton, Client Strategy Director, GfK says: ““The UK’s financial pulse weakened further this January driven by concerns over personal finances and the general economic situation.
"All five measures are down in January and the picture on the economy is especially bad with an eight-point decrease in how we see the past year and the year to come. Despite some good news about the easing of Covid restrictions, consumers are clearly bracing themselves for surging inflation, rising fuel bills and the prospect of interest rate rises.
"The four-point fall in the major purchase index certainly suggests people are ready to tighten their belts. Will the mood brighten when the latest wave of the pandemic subsides and Covid numbers improve? It seems unlikely because it’s the cost-of-living squeeze that’s worrying us now and this will affect us for months to come.”
The Overall Index Score decreased four points to -19 in January. All measures were down in comparison to the December 17th announcement.
The index measuring changes in personal finances over the last 12 months has decreased one point to -6; this is two points better than January 2021.
The forecast for personal finances over the next 12 months has decreased three points to -2; this is four points lower than this time last year.
The measure for the general economic situation of the country during the last 12 months is eight points lower at -47; this is 20 points higher than in January 2021.
Expectations for the general economic situation over the coming 12 months have dropped by eight points to -32; this is 12 points higher than January 2021.
The Major Purchase Index has decreased by four points to -10 in January; this is 14 points higher than it was this month last year.
The Savings Index has gone up by one point to +15 in January; this is three points lower than this time last year.
This index is based on the following questions to consumers: ‘How has the financial situation of your household changed over the last 12 months?’
General Economic Situation
This index is based on the following questions to consumers: ‘How do you think the general economic situation in this country has changed over the last 12 months?’
Major Purchase Index
This index is based on the following question to consumers: ‘In view of the general economic situation, do you think now is the right time for people to make major purchases such as furniture or electrical goods?’
This index is based on the following question to consumers: ‘In view of the general economic situation do you think now is?’ (a very good time to save – a fairly good time to save – not a good time to save – a very bad time to save)
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