Consumer confidence falls but major purchase plans unchanged

Consumer confidence has fallen to its lowest level in more than a year.

Consumer confidence plunged across all metrics in January, pushing the index to lows not seen since the end of 2023.

The GfK Consumer Confidence Index recorded a three point drop (down five points compared with December 2024) to -22 for January.

The index measuring changes to personal finances over the past year fell by two points to -10 (three points versus December), while changes to personal finances over the next year also fell two points to -2 (three points lower on a monthly basis).

Confidence in making major purchases was static at -20 (a fall of four points on December).

‘New Year is traditionally a time for change, but consumers don’t think things are changing for the better. This month’s results show a decline in all five measures that make up the Overall Index Score. There are particularly steep falls in consumer views on the wider UK economy, both looking back a year (down seven points) and at what’s in store for the next 12 months (eight points lower),’ says Neil Bellamy, NIQ GfK consumer insights director.

‘These figures underline that consumers are losing confidence in the UK’s economic prospects. While the Savings Index on motivation to save money is not included in the calculation of the Overall Index Score, it’s notable that it has leapt nine points in January to plus 30. This sharp increase is unwelcome because it’s another sign that people see dark days ahead and are therefore thinking of putting money aside for safety.’

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